Financial crimes are a persistent threat to financial institutions. Financial institutions have to build risk management systems that can detect and prevent malicious activities. The evolution of cloud computing has enabled leveraging computing power for machine learning in risk management functions like anti-money laundering.

Risk management in financial institutions will primarily focus on identifying, assessing, maintaining, and monitoring various risks. This is very important to ensure compliance with regulatory requirements and stability of the institution to maintain investor confidence. Each institution will have its own structure and process to define adherence to different types of risk functions. Most of the risk functions will involve the following steps: