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COMPLIANCE

RISK

MANAGEMENT

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Introduction

Definitions

Actions for mitigating compliance risk

Common Sources of compliance risk

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Board Oversight

Defining the compliance risk mgt

Approving a compliance risk mgtpolicy

Establishing a mgt structure

Periodical review of the policy

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Senior mgt Oversight

Implementing the compliance risk mgt systemapproved by the board

Establishment of an effective organizational structure

Regular contact with banks compliance staff andlawyers

Ensuring employees involvement in protecting banksreputation

Ensuring devotion of sufficient human & technicalresources

Ensuring ongoing compliance training

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Policies, Procedures and Limits

The policy must contain: Definitions

Objectives Procedures

Authorities , responsibilities & information flows

Clear statement

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a. Definition of legal documentsb. Definition of standard proceduresc. Standardized contractsd. Legal due diligencee. Documentation standardsf. Definition of major mitigating actionsg. Clear documentation Standardsh. Documentation standards by central bank

i. Safeguarding of legal documentsj. Regular compliance checks

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Self assessment Risk indicators

Risk mapping

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Place-timely manner-usable by board &management-appropriate & accurate-complexity & diversity

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Verifying

Assessing Corrective actions Appropriate scope and frequency

Monitoring Analyzing