Compliance and risk
Compliance and risk management is the practice of determining the level of risk the business is exposed to in context and ensuring that the business has adequate controls in place to manage those risks.Read more
Businesses are exposed to a number of different types of risk which have the potential to materially impact financial performance. Some notable examples are listed below:
Regulatory, reporting and compliance risk
Risks associated with compliance and reporting
Risks of financial loss, disruption or damage to the reputation of an organisation as a result of the failure of its information technology systems
Risks relating to factors that may impact the performance of the entire market simultaneously e.g. recessions & political turmoil
Financial crime risk
Risks associated with criminal conduct relating to money or to financial services or markets
Risks associated with cyberattacks, criminal intrusion and data breach.
In each area, there are professionals whose role it is to identify, assess and report on threats or risks that could impact an organisation and recommend improvements in processes and controls to ensure that risks are managed appropriately.
Within this area there are a number of key roles, all principally focused on compliance and risk.
A few examples include a regulatory risk manager, market risk professional and someone who specialises in risk (financial crime).