Risk Based Compliance Monitoring Programme

This compliance risk management course uses numerous case studies and involves a considerable element of interactive class discussions. At each stage of our risk and compliance training, the Director encourages delegates to question and test their knowledge to better understand the course material.

Introduction

• The role of compliance in a 2023 financial services firm
  • 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” 

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
• SREP reviews
• More comprehensive examinations
• The impact of new legislation/guidelines
• The importance of using key metrics & compliance KPIs
• Placing 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
• 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
• How do you know if the compliance team is effective?

Current Hot Topics

Compliance risk management training will conclude 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
• Outsourcing and smart sourcing – a focus of recent regulatory attention

Our compliance risk management course trainer has enjoyed a lengthy, fast tracked career with Lloyds Bank. His success led our trainer to senior management within the bank's private banking & wealth management division at an early age. Further headhunted to join a merchant bank at main board director level to head both the private bank and the group risk management function. With over four decades of dedicated industry experience, this compliance risk management training leader is highly knowledgeable in his field.

As a freelance compliance risk training consultant since retirement and currently an external Master Trainer at HSBC and Bank of China, you'll find working knowledge and plenty of experience at the heart of every course. Helping HSBC design their global flagship Risk Management Programme, our trainer has delivered this globally over the last five years. From world giants to small firms and partnerships our compliance risk management course leader has both created and delivered the relevant content. This accomplished global trainer and has delivered extensive programmes in the UK, USA, South America, Europe, Africa, Asia and the Middle East.

Redcliffe’s 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 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

• Redcliffe’s compliance risk management course 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 are certain nobody delivers more effectively than Redcliffe when it comes to compliance risk training
• The course director is an acknowledged subject matter expert, delivering compliance and risk management training at the world’s largest trade finance bank
• At Redcliffe 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
• Compliance and risk management 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 delegates’ feedback over many years has always been of the highest quality

This comprehensive risk based compliance monitoring programme is a ‘must know’ for:

• Anyone in a compliance, risk or support/challenge function
• Senior and top managers seeking better understanding of 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

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.

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 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 management 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.