De-risking—The Process of “Risk Reduction” That Actually Increased Risk

Sven Stumbauer ()

Chapter Chapter 15 in The Next Wave of Global Anti-Money Laundering Enforcement, 2025, pp 109-126 from Springer

Abstract: Abstract Financial institutions are facing significant challenges in managing anti-money laundering (AML) risks. While de-risking may seem prudent, it also poses significant growth challenges for financial institutions. In this chapter, we examine the challenges and potential larger risks posed by this strategy and highlight the need for a more nuanced approach to risk management that allows financial institutions to maintain relationships with clients and sectors that may be classified as high-risk.

Keywords: Risk intelligence; De-risking; Risk factor; Strategy; Money services business (MSB) (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-05824-0_15

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DOI: 10.1007/978-3-031-05824-0_15

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