# What are the three steps for risk-based approach?

**URL:** <https://www.amlfaqs.com/t/what-are-the-three-steps-for-risk-based-approach/208>\
**Category:** Singapore\
**Created:** [October 9, 2024, 9:57am UTC](https://www.amlfaqs.com/t/what-are-the-three-steps-for-risk-based-approach/208 "2024-10-09T09:57:53Z")\
**Posts on this page:** 2\
**Page:** 1

<div class="post-metadata">

**Author:** ![pathik](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/pathik/32/5_2.png) [@pathik](https://www.amlfaqs.com/u/pathik)\
**Post date:** [October 9, 2024, 9:57am UTC](https://www.amlfaqs.com/t/what-are-the-three-steps-for-risk-based-approach/208/1 "2024-10-09T09:57:53Z")

</div>

What are the three steps for risk-based approach?

---

<div class="post-metadata">

**Author:** ![pathik](https://yyz2.discourse-cdn.com/flex010/user_avatar/www.amlfaqs.com/pathik/32/5_2.png) [@pathik](https://www.amlfaqs.com/u/pathik)\
**Post date:** [October 17, 2024, 5:27am UTC](https://www.amlfaqs.com/t/what-are-the-three-steps-for-risk-based-approach/208/2 "2024-10-17T05:27:29Z")

</div>

The three broad steps of undertaking a risk-based approach are:

1. Identifying the risk
2. Assessing the risk
3. Mitigating the risk

Businesses and institutions undertake these steps on a continuous basis by conducting ongoing reviews, assessing the residual risks and implementing the required risk mitigation measures.

Head on to this illustration to learn more about the steps of a risk-based approach

> **[Cyclical Process of Risk-Based Approach: Important to Combat Financial Crime](https://amlsingapore.com/cyclical-process-of-risk-based-approach/)**
>
> Here is an infographic elaborating the Cyclical Process of Risk-Based Approach, which the regulated entities must understand and implement to safeguard the business.