CFPB Readiness Series: Making Risk Assessment Work For You
Once you’ve determined that you need to undergo a CFPB audit, conducting a risk assessment enables you to find and address gaps before the audit begins.
What is a Risk Assessment and Why Should I Care?
A risk assessment is a systematic process of evaluating the potential risks that may be involved in a projected activity or undertaking. It involves evaluating operational, compliance, and reputational risks. Aside from being mandated by the CFPB, risk assessments help you:
- Maintain revenue and business operations
- Ensure future growth and opportunities
- Avoid costly lawsuits and fines
Risk assessments also help to instill confidence, develop a clear direction, and reduce costs for your organization. However, in order to reap these benefits, you’ll need to begin your risk assessment by:
- Identifying and understanding the federal, state, and local laws that are applicable to your organization. It is essential that you have a clear understanding of the laws that regulate your organization’s collection practices
- Staying up-to-date on consent orders and recent litigation
- Determining the most likely way of a violation of those laws will occur
- Establishing policies and procedures
- Documenting all remediation actions need and any changes as a result of the risk assessment
For more information on how KirkpatrickPrice can help you conduct your risk assessment, contact us today!