Compliance Risk Management

Compliance risk management integrates regulatory requirements into enterprise risk frameworks, establishing processes to identify applicable obligations, assess compliance status, implement controls, and monitor effectiveness. It involves horizon scanning for regulatory changes, obligation mapping, compliance testing, issue remediation, and regulatory relationship management. The function typically sits within the second line of defense, providing oversight and challenge to business units. A multinational bank's compliance risk management program spans anti-money laundering, sanctions screening, consumer protection, capital adequacy, and conduct risk across multiple jurisdictions, each requiring specialized expertise and control frameworks.