Front Bank Case Study

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Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. How & Who: Identify risk and performance indicators, both qualitative and quantitative – Front Office (5) Business units should identify robust controls to detect illicit activities. They should be allocated sufficient resources to perform this function effectively. – Front Office (5), and collaboration with in concert with Credit, Market and Operational Risk Department (4), Compliance Department…show more content…
– Front Office (5), and collaboration with Compliance Department (3), Back Office (5), Finance Department (7) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The 2LOD ensures that the risks are actively and appropriately managed, and provide an independent effective challenge to the first line of defense. How & Who: Propose the policy framework and sound risk management process and internal control, while also supporting, assisting, and providing recommendations related to ORM approaches to the first line of defense. – All 2LOD…show more content…
- Compliance Department (1,2) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The Third Line of Defense helps the Bank to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. How & Who: Develop policies for periodic internal audits (5) covering: Adequacy of bank’s policies, procedures and controls identifying key risks, addressing the identified risks and complying with laws, regulations and

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