An independent risk and compliance review is often a reasonable strategy to get back on track Part I of II
Copenhagen Compliance® has developed a third-party assessment of the financial company's regulatory framework. The aim is to perform a clear eyes review on the costs and headcount components of regulatory compliance and assess the quality and validity of the practical implementation.
The workshop is an exercise to help the financial institutions align themselves closer to global regulatory standards and get accurate feedback on how the current regulatory compliance is functioning.
Among other things, the workshop/program will test the following;
- The market impact of the regulations including scrutinising the cost of compliance
- Examine the accounting and auditing standards, as well as financial disclosures of listed companies
- Resilience and quality of the regulatory and supervisory framework, and the capacity to manage and resolve Governance, Risk Management and Compliance issues.
Runaway compliance costs are a stakeholder rip-off
The primary reason that within the financial services division many areas have shrunk, reducing the revenues and share price, In addition to settling on huge fines from the oversight authorities, there is an enormous increase in the Risk and Compliance staff. (HSBC, for example, has 24,300 staff specialising in risk and compliance, almost 10 percent of its entire workforce, and spends $750m-$800m a year on its compliance and risk program, an increase of $150m-$200m from the year before and a further rise is expected the next year(s) )
On the other hand, this runaway compliance cost to rip off has made the financial services to become much more risk-averse and will probably affect the future earnings as well. The assessment also serves as a gap analyses and lay down the roadmap with an updated framework for future regulatory changes
We suggest that the evaluation is conducted as part of a regular Assessment Program to analyse the risk and compliance implementations in all jurisdictions and systemically important sectors. The appraisal will undergo financial stability evaluations that include strengthening of certain supervision areas e.g. securities market, intermediaries, fund managers and suggestions on the needed improvement mechanisms to ensure compliance, as well as accounting and auditing requirements.
There is a separate section on a cost-benefit analysis without micro-managing risk and compliance concerns by appointing professional resources to balance and safeguard investor interests, developing the market, and stakeholder investor protection as a priority.
The assessment will result in management keeping a careful watch on;
- The Risk and Compliance Roadmap and regulatory framework
- The updated assessment with as plan to audit all areas in the Assessment Program that analyses the resilience and the quality of its regulatory framework in each sector or division
- Compliance cost, accounting and auditing standards, and financial disclosures are scrutinised
- A plan to building resources from within the organisation highlighting the areas that management needs to work on
For additional workshops see; http://www.copenhagencompliance.com/CC_Global_GRCIT_Model-Brochure.pdf
http://www.copenhagencompliance.com/Senior-Manager-Regime-Brochure.pdf
