THE ESSENCE AND DEFINITION OF COMPLIANCE RISK

In the practice of an industrial enterprise, the concept of compliance is closely linked to the management / control system in the organization, as well as to the risks of non-compliance, non-compliance with the laws, regulations, rules and standards of supervisory authorities, industry associations and organizations, codes of conduct, etc.The purpose of the article is to investigate the theoretical and methodological basis of compliance risk and the possibilities of using this category in the organizational and economic activities of an industrial enterprise in order to ensure its stable and efficient operation.The concept of compliance risk with respect to industrial sphere is not enshrined in the Ukrainian legislation, but it is successfully used in banking and can be successfully adapted to the characteristics of an industrial enterprise. For industrial enterprises, it is proposed to define compliance risk as the risk of the application of legal or regulatory penalties, material financial loss, loss of market share or loss of reputation by an enterprise as a result of non-compliance with laws, regulations, rules, standards of self-regulatory organizations or external and internal codes or regulations. concerning production and business activity. The compliance function draws attention to many different aspects of compliance risks: from financial risks to reputational risks, from corruption to the code of conduct of employees, and this comprehensive approach allows for the most effective monitoring of the enterprise activity and to make informed and thoughtful decisions, create situations where the risk of compliance risk is minimal. In the article it is proved that if an enterprise plans to enter the international market, work with the compliance function is a prerequisite for development and further cooperation, since many foreign partners work exclusively with organizations that comply with international standards, including in the work with compliance risk control.

Outsourcing Compliance Functions and Fraud Detection

This chapter addresses the compliance function for hedge funds and considers areas where violations can occur. It surveys regulation in place in the US and internationally, looking in particular at the Securities and Exchange Commission and the Commodity Futures Trading Commission, and highlights key issues. Primarily, the chapter focuses on the outsourced nature of many of the agents responsible for providing assurance of the honesty of hedge fund operations, including trading, and reporting, registration, and discussing how compliance is made effective. The chapter concludes by considering the risks that require further research.

Developing a Maturity Model for the Compliance Function of Investment Firms: A Preliminary Case Study from Norway

This paper develops a model for the assessment of the maturity of the compliance function of investment firms. The model indicates a path of evolution wherein the compliance function matures from being reactive and inconsistent to becoming a proactive and integrated part of a firm’s business practices. A preliminary case study approach is used to test the practical application of the model in a Norwegian investment firm. The findings generally illustrate the ways in which the effectiveness of the compliance function can be evaluated using a maturity model. When it was used in the assessment of the compliance function within the case firm, the suggested model proved to be compatible with practice. The model represents an improvement framework that can help practitioners identify the status of the compliance function and provide guidance on its future improvement.

Opportunities of Using IT Compliance Tools as an Organization's Management Function

The present article deals with the study of the application and regulatory consolidation of the IT compliance function in both commercial and state-financed organizations. In addition to studying the application of this function, the article focuses on the issues of building a compliance system in the organization. In the main part of the work, compliance is considered as a system of measures taken by an organization for its effective operation. A detailed analysis of the advantages and disadvantages of the concerned system is presented, as well as the authors’ assessment of the risks and prospects associated with the implementation and application of the compliance methodology within the enterprise.

Good People Doing Bad Things

Nearly all major corporations and many public agencies have established ethics and compliance departments, some of them as the result of penalties imposed by the US Department of Justice, others due to embarrassing scandals. The responsibilities of these departments range from inculcating codes of conduct and preventing bribery, to impeding litigation for harassment and bribes, or ensuring that government certifications and branch standards are followed. For the compliance officer, ethics breaches are not due to unethical persons, but inadequate compliance training. This article, based on fieldwork in compliance training conferences, anti-corruption events and readings of ethics and compliance manuals, describes how a ‘culture of compliance’ is pursued in organisations. In the wake of continuing ethics breaches, are these regimes genuine efforts to ‘do the right thing’, or simply a façade to improve firms’ reputations? Compliance can be both real and fake, and the compliance function must ensure where the latter is authentic and where it can be ignored.

BANKING COMPLIANCE FUNCTION(COMPARATIVE STUDY BETWEEN COMMERCIAL & ISLAMIC BANKS)

Never the less, banking compliance function became one of the most important functions in banking sector according to its characteristics that considered as an interior control tools to control (executive management, departments, subsidiaries…etc) in any bank; and their compliance towards applying rules, recommendations and legislations. In addition to, estimating the risks and limited them; and controlling the anti-money laundering. Thus, these functions that covered the main concept of (Banking Compliance) would avoid the bank to be under the control of any sanctions.

Compliance Monitoring and Testing Seismometer to Detect Compliquake

Effective corporate compliance function has been the focus of all the financial institutions (FI) and the regulators across the globe in this fast-changing and dynamic business landscape. The compliance function is a key component of financial institutions' (FIs) lines of defence in terms of managing and mitigating the risks. Compliance monitoring and testing by the compliance departments can act as an effective “seismometer” in detecting the “compliquakes” in the FIs if implemented effectively. If FIs across the globe internalize this philosophy, the author opines that the overall financial services and the financial institution's ecosystem will be a much better world in terms of identification and strengthening of the compliance control framework.

Mechanism to combat money laundering in Iraqi banks through compliance monitor applications

The banking compliance function has become an important job in the banking sector, as it represents one of the internal banking supervisory bodies that tracks the extent of the bank’s commitment (executive management، divisions، branches ... etc.) to implement laws، regulations, risks، regulations، and legislation. The extent of the bank’s commitment to implement anti-money laundering procedures، and the compliance monitor’s follow-up in the bank to the extent of commitment to implementing these laws and legislation would limit and reduce money laundering operations L, and then avoiding the bank’s exposure to sanctions of various kinds.