Glossary

A tabletop exercise is a discussion-based simulation in which participants talk through how they would respond to a described crisis, to test plans, roles and decisions without disrupting real operations.

Tail risk is the chance of rare, extreme outcomes that sit at the far ends of a probability distribution and can cause losses much larger than usual.

A tax governance framework is the set of policies, roles, controls and board oversight an organisation uses to manage its tax risk and keep its tax affairs accurate and compliant.

Tax transparency is the openness of taxpayers and governments about tax matters, including the sharing of information between tax authorities and the public disclosure by companies of their tax approach and payments.

A thematic review is a regulator's examination of how many firms handle a single issue or product at the same time, used to compare practice, find common failings and publish findings or take action.

Third-party risk is the risk of loss, disruption or compliance failure that comes from relying on an outside party, such as a supplier, contractor, agent or service provider, to deliver goods, services or access.

Third-party risk management is the set of policies and processes a firm uses to identify, assess, contract with, monitor and exit external suppliers so that the risks they bring stay within acceptable limits.

Tone at the top is the example that a board and senior executives set through their words, decisions and behaviour, which shapes how ethically and compliantly the rest of the organisation acts.

Trade finance risk is the exposure a bank takes when it funds, guarantees or pays for international trade, because the supporting documents can hide money laundering, sanctions breaches or fraud.

Trade mis-invoicing is deliberately stating a false price, quantity or description of goods or services on trade documents, so that value moves across borders in a way that hides its real purpose.

Trade-based sanctions evasion is the use of false, misleading or altered trade documents and shipping arrangements to move goods or value for sanctioned parties, or to sanctioned places, without detection.

Training data governance is the set of controls over where AI training data comes from, how good it is and whether it may lawfully be used, covering provenance, quality, consent and bias.

Transaction screening is the checking of payments and trade messages against sanctions lists, usually before release, to catch prohibited parties, banks, places and goods in the transaction details.

Transition risk is the risk of financial loss arising from the shift to a low-carbon economy, through changes in policy, technology, market demand, legal liability and reputation.

Transparency is the practice of making decisions, rules, performance and risks visible to people with a legitimate interest, so they can understand and question what an organisation or public body does.

Tunnelling is when controlling shareholders or managers siphon a company's assets or profits to themselves or their other firms, leaving minority shareholders and creditors worse off.