What are components of AML risk mitigation?

The answer is centered on the concept of implementing proactive measures to address Anti-Money Laundering (AML) risks effectively. This includes developing targeted strategies and controls that are designed not only to identify potential vulnerabilities but also to act upon audit findings and issues that have been identified through various assessments.

In terms of AML risk mitigation, having strategies and controls in place is essential to ensure that the organization can respond to both existing and emerging threats in a systematic and organized manner. This type of approach minimizes the organization's exposure to risk by ensuring that identified weaknesses are addressed, thus enhancing overall compliance with regulatory standards and improving the institution's ability to detect and prevent money laundering activities.

The other options lack the necessary focus and proactive elements required for a comprehensive risk mitigation strategy. For instance, merely listing potential risks without action steps does not contribute to meaningful risk management. Additionally, documenting past incidents without a forward-looking strategy does not prevent future occurrences. Finally, general compliance without specific focus fails to target particular risks that may be unique to an organization, leaving gaps that could be exploited by illicit actors.