Risk Based Compliance Monitoring Programme

Learn how to identify, monitor and reduce the compliance risks that are key to your business

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A one-day compliance risk training

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Download: Course Category Brochure | Course Outline

At Redcliffe Training we use numerous case studies with sessions including a considerable element of interactive class discussions. At each stage of compliance and risk training, the Director encourages delegates to question and test their knowledge to better understand course material.

Introduction

The role of compliance in a financial services firm in 2024:
- Oversight but NOT ownership
- Acting as an Oracle
- Quality control
- Assurance
- Challenge
The 2023 Three Lines of Defence model; risk now owned and managed by the relevant Senior Management function
The four-eyes approach
Regulatory expectations
Challenging the business
Creating the right culture
Defensive reporting
Ensuring effective systems and processes are in place
Ensuring that they actually work
Compliance as a partner not just “the enemy”

Risk-Based Compliance Course: The Risk-Based Approach

Regular Compliance Risk Assessment – The Risk Taxonomy
Identify all key risks; a challenging process without firm-wide buy-in
Determine the frequency and impact of each using the heat method approach
Risk appetite statements – a key driver
Risk Monitoring – planning, controlling and managing
Allocate Risks into different categories:
- Inherent
- Residual
- Reject
- Accept
- Manage
Oversee appropriate and effective controls and mitigants
Consider whether controls and mitigants are successful
Determine the acceptability of residual risks to the business

Regulatory Expectations

Responsibility Map
Clear risk taxonomy
Clear accountabilities – especially ownership and management
Effective and user-friendly compliance policies and procedures
Training of key staff – defined, verifiable & effective programmes
Compliance risk management training covers SREP reviews
Risk and compliance training includes more comprehensive examinations
The impact of new legislation/guidelines
The importance of using key metrics & compliance KPIs
Placing the interests of the customer at the heart of the business
The impact of Principle 12
Clear supervision and governance
Testing procedures including stress testing and scenario analysis
Regulatory relations

Risk-Based Compliance in Practice

What are the critical activities?
Providing regulatory advice to the business
Compliance surveillance, reporting, and defined compliance metrics
Dealing with conflict clearing: personal account dealing, political contributions,
Handling registrations and designations
Examinations and desk reviews
Working with internal audit
Working with external audit
Working with regulators
Reviewing, developing, modifying and communicating procedure changes
This risk based compliance course investigates the concept of challenge (when necessary)
Position monitoring
Control oversight: Chinese wall, chaperoning, watch list, the restricted list
Communications with the public and electronic communications review
Anti-money laundering compliance and embargoes
Regulatory inquiries, complaints

Structuring a Risk-Based Compliance Function

Creating an effective oversight system
Centralised vs decentralised structure
Risks inherent in each type of structure
What content knowledge should a compliance officer have?
What are the competencies of a successful compliance officer?
How big should the team be?
Managing compliance monitoring in a small firm
Integration of the various areas of compliance
Collaboration with other control areas of the firm
Finally, compliance risk training asks; how do you know if the compliance team is effective?

Current Hot Topics

Compliance risk management training concludes with the following:

The Senior Managers Regime – Industry-wide
Responsibility Maps
Taking “Reasonable Steps”
Cybercrime and Business Continuity
FCC & AML (Financial Crime Compliance & Anti-Money Laundering) – effectiveness of systems
Conflicts of Interest
Aggressive tax avoidance
Insider trading risks
Dealing with mistakes and supervisory lapses
Managing reputational risk fallout
Importance of keeping the regulator in the loop – as early as possible
Finally, risk and compliance training covers outsourcing and smart sourcing – a focus of recent regulatory attention

At Redcliffe Training our Compliance Risk Management course specialist experienced a fast-tracked career and much success early on with differing roles at Lloyds Bank. Making his way quickly to a senior management position within the private banking & wealth management division means participants gain first-hand knowledge directly via our trainer’s experience.

Headhunted to join a merchant bank at the main board director level, our trainer headed the private bank and the group risk management function. With forty-plus years dedicated to this industry, there’s nobody better suited for risk and compliance training delivery.

Our subject expert has worked as a freelance compliance risk training consultant since retirement. In addition, he works as an external Master Trainer at HSBC and Bank of China. He helped design their global flagship Risk Management Programme with the former, aiding its delivery worldwide over the last five years. Working with huge companies through partnerships, this trainer delivers extensive programs in the UK, USA, South America, Europe, Africa, Asia and the Middle East.

Risk and compliance training covers:

The importance of an effective compliance function
How to successfully employ a risk-based approach for effective resource allocation
The immediate impact of an effective compliance program
How to recognise the damage caused by an ineffective process
Appreciating good compliance must be embedded into the culture of an organisation (it can’t just be imposed)
The importance of keeping up with regulatory changes
Ensure processes are robust, effective and can be demonstrated to all stakeholders

Compliance risk management training is highly sought after. As a company, we have been the primary training supplier to two of the world’s largest banks, for many years
This is a core competency for us and we’re certain nobody delivers more effectively than Redcliffe Training
Sessions are by an acknowledged subject matter expert, with risk and compliance training delivered at the world’s largest trade finance bank
Our trainers aren’t simply ‘academics’ as opposed to long-serving industry experts achieving at minimum a senior management position
Our course director has been in the industry for over 40 years. He was a former main board director of a London-based merchant bank
Training is packed full of real-life case studies and discussion sessions. Delegate involvement is encouraged at all times
We are judged solely by our results and we are proud to say that participant feedback over many years has always been of the highest quality for compliance monitoring training

This is a comprehensive risk based compliance monitoring programme and as such, is a ‘must know’ for:

Anyone in a compliance, risk or support/challenge function
Senior and top managers seeking a better understanding of their responsibilities
Compliance & Risk Officers
Internal audit
Department Heads, Team Leaders & Supervisors
Anyone with an interest or whose roles and responsibilities involve compliance and/or risk oversight will benefit from compliance risk management training

Compliance monitoring training at Redcliffe covers the necessary information required to further progress. Courses can be fully personalised upon request and delivered to your team accordingly.

Under the SMCR, risk management is now very ‘personal’ across the whole regulatory financial services industry; the concept of ‘risk ownership and management’ resting with the SMF, has changed the role of compliance and it’s important to remain current.

Regulatory compliance requirements have grown exponentially in recent years, now touching almost all operational areas. Compliance has become extremely complex and expensive with extensive new regulations, multiple overlapping information sources, and operational impacts that are difficult to identify and track. Financial Institutions typically manage compliance workflows manually. As a result, compliance and operational costs are high, compliance requirements and timelines are missed, exam and audit exceptions occur and liability risk increases. Compliance risk management training and the relevant attributes should be in place before things escalate to this point.

A risk-based approach to compliance involves identifying high-risk areas within your organisation's compliance universe and building and prioritising your investment compliance monitoring program around these risks. Compliance risk training focuses your organisation and compliance resources on the areas most likely to cause concern. This risk-based approach also re-positions compliance from a function executed in a vacuum to one that provides real value and reaches into each part of the business supported by relevant analysis, understanding and documentation.

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