LFIs should take appropriate steps to conduct a regular and updated risk assessment to identify, understand, assess, monitor, and manage their risks in line with their business nature and size. While there is no “one-size-fits all” risk assessment, the assessment exercise should generally consist of a holistic review of the LFI from top-to-bottom and assess its touchpoints to the outside world where the LFI may potentially, directly or indirectly, be exposed to sanctioned parties or transactions. In most cases, LFIs should consider performing such risk assessments annually; however, assessments that are more frequent or less frequent may be justified, depending on the particular circumstances. These may include a change to the LFI risk profile, regulatory or law enforcement advisories, or global trends in terrorism financing (“TF”) and the financing of proliferation of weapons of mass of mass destruction (“PF”).