COMPLIANCE GOVERNANCE STRUCTURE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Advanced Bank Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary role of the Chief Compliance Officer (CCO) in a bank?
The CCO is responsible for overseeing the bank's compliance function, ensuring adherence to regulatory requirements, and reporting compliance issues directly to the Board or senior management.
What is the primary objective of compliance governance in a bank?
To ensure adherence to laws, regulations, and internal policies.
Which RBI guideline mandates the appointment of a Chief Compliance Officer in banks?
RBI's Guidelines on Compliance Function in Banks (2007, revised 2020) mandate that all scheduled commercial banks appoint a CCO with adequate seniority and independence to head the compliance function.
Who is responsible for overseeing the compliance function at the Board level?
The Audit Committee of the Board oversees compliance at Board level.
What is the minimum rank/grade prescribed by RBI for the Chief Compliance Officer in a bank?
RBI requires the CCO to be at least of the rank of General Manager or equivalent, ensuring sufficient seniority to interact with the Board and senior management independently.
What is the second line of defence in the three-lines-of-defence compliance model?
The compliance and risk management function forms the second line.
What does the three-lines-of-defence model mean in the context of compliance governance?
The first line is business units managing their own compliance risks; the second line is the compliance and risk function providing oversight; and the third line is internal audit providing independent assurance.
What is the first line of defence in banks' compliance governance?
Business units and operational staff form the first line of defence.
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