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.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of a compliance function in a bank?
The primary objective is to ensure the bank adheres to applicable laws, regulations, rules, and codes of conduct, thereby protecting the bank from legal, regulatory, and reputational risks.
What is the first step in identifying compliance issues within a bank?
Mapping all applicable laws, regulations, and internal policies.
How does the Basel Committee on Banking Supervision define compliance risk?
The Basel Committee defines compliance risk as the risk of legal or regulatory sanctions, material financial loss, or loss to reputation that a bank may suffer as a result of its failure to comply with applicable laws, regulations, rules, and codes of conduct.
What is meant by compliance risk identification in the banking context?
Process of recognising events that may breach regulatory requirements.
What are the two broad categories of compliance issues identified in banks?
Compliance issues are broadly categorized into internal compliance issues (violations of internal policies, procedures, and codes of conduct) and external compliance issues (violations of external laws, regulations, and statutory requirements).
Which body issues master directions on compliance functions for Indian banks?
Reserve Bank of India (RBI).
What is a compliance risk assessment and why is it important for banks?
A compliance risk assessment is a systematic process of identifying, evaluating, and prioritizing compliance risks across all business lines and functions. It is important because it helps banks allocate compliance resources effectively and implement controls where risk exposure is highest.
What is a compliance issue as distinguished from a compliance risk?
A compliance issue is an actual breach or violation already occurred.
Video classes for this chapter
Framework for Identification of Compliance Issues and Compliance Risks
Framework for Identification of Compliance Issues and Compliance Risks
Framework For Identification Of Compliance Issues And Compliance Risks
Framework for Identification of Compliance Issues and Compliance Risks
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