Duration: 3 days
Delivery method: In-house
This module is designed to provide an overview of key elements of risk and to demonstrate why they are important to a senior Compliance professional. Part of the challenge of a senior Compliance professional is to have sufficient understanding of the markets, the products and the risks to offer a...
This module is designed to provide an overview of key elements of risk and to demonstrate why they are important to a senior Compliance professional. Part of the challenge of a senior Compliance professional is to have sufficient understanding of the markets, the products and the risks to offer a robust and reasoned challenge to the business. Furthermore, regulators have a significant interest in a firm’s risk awareness and infrastructure. Compliance Officers should be conversant with the main principles of market, credit, liquidity and operational risk in order to work effectively with their risk partners and to be able to perform the role of relationship manager with the regulators. A key risk facing Compliance Officers is the risk of unidentified conflicts of interest. This module addresses advanced conflicts of interest, including some highly practical situations which have never been published through enforcement cases.
This course can be taken as a stand-alone module or as part of the Diploma in Compliance Leadership. The Diploma programme has been developed by CCL Academy in association with the ICMA Centre, Henley Business School, University of Reading.
Who is this for?
This programme is aimed at Heads of Compliance/Financial Crime Compliance (FCC) and senior Compliance/FCC staff with a minimum of 4 years of relevant experience.
Why is Risk important for Compliance Officers?
- The key elements of risk management
- A holistic approach to risk management – does enterprise risk management make sense?
- Regulatory expectations regarding risk management
- The risk architecture – risk appetite, policies, procedures, reporting, registers, metrics and MI
- How financial metrics and statistics can illustrate the impact of risk
- The impact of Basel II
- Towards Basel III
Credit, Market and Liquidity Risk
- Different types of credit risk
- Why credit risk is important for both banks and investment firms
- Regulatory expectations of credit risk management
- Key principles of market risk
- What is liquidity risk?
- Why does it affect all types of firm?
- How to understand where liquidity risk stresses can occur?
- The importance of good liquidity risk management
- What is operational risk?
- What types of risk does operational risk cover
- Measuring and modelling operational risk
Conflicts of Interest
- Challenging conflicts of interest facing a regulated firm
- The holistic approach needed to identify and manage conflicts
- The role of senior management in conflicts management and how to deal with management at a senior level
- The involvement of the Compliance Function in conflict management
- Case studies of specific conflicts from both management and compliance perspectives
- Exercise: Work in groups to consider, in a safe environment, actual or theoretical conflicts
- The role of Compliance in reviewing your firm’s remuneration policy
After attending this course, participants will:
- Understand why risk issues are so important to Compliance Officers
- Have a basic understanding of market, credit, operational and liquidity risk
- Appreciate the need for Compliance and Risk Officers to work closely together