Which term best describes a program that tailors controls based on risk?

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Risk-based compliance centers on allocating controls and resources according to risk levels across customers, products, and geographies. A program described this way adjusts the level of due diligence, monitoring intensity, and policy thresholds based on the risk assessment results. This approach makes the AML program more effective and efficient by focusing stronger controls where risk is greatest and avoiding unnecessary burdens for lower-risk scenarios, which regulators expect. For example, high-risk customers receive enhanced due diligence and more frequent reviews, while low-risk customers follow standard processes. The other terms don’t capture this approach: substantial fines are penalties, an investigative process is about pursuing leads, and non-U.S. persons is simply a customer category rather than a governance approach. Therefore, the term describing tailoring controls by risk is risk-based compliance.