CAIIB · ABM · Chapter 29

Framework for Identification of Compliance Issues and Compliance Risks

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.

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Q

Legal / Regulatory Sanctions?

A

monetary penalties under Section 47A of the Banking Regulation Act, licence cancellation, prosecution.

Q

Material Financial Loss?

A

restitution to customers, write-offs, business interruption.

Q

Reputational Loss?

A

share-price decline, withdrawal of correspondent-banking ties, customer attrition.

Q

Corruption — What it Covers / Typical Compliance Hooks?

A

What it Covers: Bribery, kickbacks, undue influence in credit / procurement; Typical Compliance Hooks: PCA 1988, RBI ‘Staff Accountability Framework for NPAs (2021)’

Q

Employee Behaviour — What it Covers / Typical Compliance Hooks?

A

What it Covers: Conduct, sexual harassment, insider dealing, fraud; Typical Compliance Hooks: POSH Act 2013, Whistle-Blower Policy, Code of Conduct

Q

Workplace Health & Safety — What it Covers / Typical Compliance Hooks?

A

What it Covers: Safe premises, ergonomic workstations, fire safety; Typical Compliance Hooks: Factories Act, ISO 45001, branch-safety audits

Q

Environmental Impact — What it Covers / Typical Compliance Hooks?

A

What it Covers: ESG lending exposure, climate-risk compliance; Typical Compliance Hooks: RBI Disclosure Framework on Climate-related Financial Risks (Feb 2024)

Q

Data Management — What it Covers / Typical Compliance Hooks?

A

What it Covers: Customer data, KYC records, cross-border data flow; Typical Compliance Hooks: DPDP Act 2023, RBI Data Storage Localisation Direction

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