Document background
The Bank Fraud Risk Assessment is a critical document required for financial institutions operating in Hong Kong's highly regulated banking sector. It serves as a comprehensive evaluation tool designed to identify, assess, and mitigate potential fraud risks across all banking operations. This document is typically prepared annually or when significant operational changes occur, and must comply with the Hong Kong Monetary Authority's guidelines and regulatory requirements. The assessment covers various aspects including digital banking risks, internal control effectiveness, external threat analysis, and emerging fraud trends. It is particularly important given Hong Kong's position as a major financial hub and the increasing sophistication of fraud schemes in the digital age. The document forms a crucial part of a bank's risk management framework and is regularly reviewed by both internal stakeholders and external regulators.
