What is a governance & risk management audit for APIs?

A governance & risk audit assesses how well an API institution is governed, how risks are managed, and whether internal controls and oversight mechanisms are functioning effectively.

Why is governance structure important for APIs?

Strong governance ensures clear roles, oversight, accountability, risk appetite alignment, and regulatory confidence. It helps prevent conflicts, compliance failures and strengthens decision-making.

How is a risk framework assessed in such an audit?

The audit reviews how the institution identifies, assesses, monitors and mitigates risks—such as operational, financial crime, compliance, or reputational risks—and how it escalates issues.

What does internal control testing involve?

It involves testing whether controls (approval processes, supervision, permissions, audit trails) are not just documented but actually work in practice across operations.

How do risk reporting and escalation get evaluated?

The audit checks how risk events or indicators are reported upward, whether escalation is timely, who reviews reports, how corrective actions are tracked and monitored.

What is a governance & risk gap analysis?

Gap analysis compares current practices vs. best practices or regulatory expectations, identifying weaknesses or missing controls and recommending improvements.

Governance & Risk Management Audit | API Control & Oversight

Governance & Risk Management Audit

Strong governance and effective risk management are essential for the sustainable operation of an Authorised Payment Institution. Regulators, including the FCA, expect APIs to demonstrate robust oversight, clear accountability, and a proactive approach to identifying and mitigating operational and financial risks. ABM Global’s Governance & Risk Management Audit provides a detailed, independent assessment of your governance structures and risk management frameworks, ensuring operational resilience, regulatory compliance, and strategic alignment.

Board Oversight and Management Accountability

We evaluate the structure, responsibilities, and effectiveness of your board and senior management teams, ensuring clear accountability for decision-making, risk oversight, and regulatory compliance. Our review covers board composition, committees, reporting lines, and governance policies, confirming that leadership demonstrates both operational control and strategic vision

Internal Control Frameworks

ABM assesses your internal control environment, including operational procedures, monitoring mechanisms, and compliance oversight. This includes evaluating authorization processes, segregation of duties, and escalation protocols, ensuring that controls are sufficient to mitigate risks, prevent operational failures, and safeguard the interests of clients and stakeholders.

Risk Management Processes

Our audit reviews the identification, assessment, and mitigation of key risks across the organization. We assess risk registers, scoring methodologies, scenario planning, and contingency measures to ensure that the firm maintains a proactive approach to emerging operational, financial, and regulatory risks. This also includes evaluating how risks are monitored and reported to the board and senior management.

Regulatory Compliance Alignment

ABM ensures that your governance and risk management frameworks align with FCA expectations, SM&CR requirements, and industry best practices. We examine policies, procedures, and reporting mechanisms, confirming that the firm demonstrates transparency, accountability, and adherence to regulatory standards.

Gap Analysis and Recommendations

Our audit identifies weaknesses, gaps, or inefficiencies in governance or risk management practices. We provide practical, actionable recommendations to strengthen oversight, improve operational controls, enhance risk mitigation, and increase regulator confidence in your API’s governance framework.

Ongoing Monitoring and Improvement

Beyond the audit, ABM offers guidance on continuous improvement of governance and risk processes, including updates to policies, board reporting enhancements, and strengthening internal oversight mechanisms. This ensures that your API maintains resilient governance structures capable of adapting to business growth, regulatory changes, and emerging operational risks.