The basic systems conducive to compliance risk management mainly include three items: first, establish a compliance performance appraisal system for managers, which embodies the values of advocating compliance and punishing violations.
The second is to establish an effective compliance accountability system, strictly identify and investigate violations, take effective rectification measures, improve business management processes in a timely manner, and revise relevant policies, processes and operational guidelines in a timely manner. The third is to establish an honest reporting system, encourage employees to report illegal, unprofessional or suspicious behaviors, and fully protect informants.
Compliance Risk According to the regulations of the Compliance and Internal Compliance Department of the Bank issued by the Basel Committee on Banking Supervision, "compliance risk" refers to that a bank may be subject to legal sanctions or regulatory penalties for failing to comply with laws, regulations, regulatory requirements, rules, relevant standards formulated by self-regulatory organizations and codes of conduct applicable to its own business activities.
Compliance risk management measures:
Compliance management refers to a set of management activities and mechanisms for enterprises to formulate compliance policies, uniformly formulate and constantly revise internal norms and supervise the implementation of internal norms according to the requirements of external laws and regulations, so as to strengthen internal control, give early warning to violations, and prevent, resolve and control compliance risks.
The purpose of compliance management is to establish a mechanism to enable companies to effectively identify, evaluate and monitor compliance risks, and actively avoid violations of laws and regulations, so as to avoid legal sanctions or financial and reputation losses and prevent operational risks.
Compliance management, business management and financial management are also called the three pillars of enterprise management. Compliance management is actually an important aspect of internal control and a key link of risk management.