Toward a mapping of compliance risk in banks

Toward a mapping of compliance risk in banks

Purpose Compliance risk management in the banking sector is crucial because of its multifaceted nature and its potential repercussions on reputation and financial stability. This study aims to present a systematic approach to mapping compliance risks, leveraging the risk self-control assessment (RSC...

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Bibliographic Details
Published in:Journal of financial regulation and compliance Vol. 32; no. 5; pp. 633 - 645
Main Authors: Tahiri, Amal, El Arif, Fatima Zahra
Format: Journal Article
Language:English
Published: London Emerald Publishing Limited 18-11-2024
Emerald Group Publishing Limited
Subjects:
Accountability
Banking industry
Banks
Compliance
Ethics
Financial institutions
Integrated approach
International banking
Professionals
Reputations
Sanctions
Self evaluation
Whistleblowing
Risk self-control assessment
Compliance risk
Risk mapping
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Summary:Purpose Compliance risk management in the banking sector is crucial because of its multifaceted nature and its potential repercussions on reputation and financial stability. This study aims to present a systematic approach to mapping compliance risks, leveraging the risk self-control assessment (RSCA) method. Integrating quantitative and qualitative assessment techniques and drawing on human expertise and industry best practices. Design/methodology/approach The authors followed a methodology that involves conducting semistructured interviews with banking compliance professionals and analyzing professional frameworks to gather pertinent information. This comprehensive approach allows to obtain a holistic view of the risks involved and to refine the risk analysis process. Findings A step-by-step guide to map compliance risk within banks is proposed. The authors offer a rigorous process to enhance compliance risk management practices within the banking sector, providing actionable insights to effectively navigate regulatory complexities and safeguard financial stability. Practical implications The insights from this paper will guide compliance officers and risk managers to better assess and monitor compliance risk within their organizations. Originality/value To the best of the authors’ knowledge, this may be the first thorough paper that tackles the topic of mapping compliance risk in banks, from identifying areas of risk to corrective measures after drawing up the risk map, using the RSCA approach.
ISSN:1358-1988
1740-0279
DOI:10.1108/JFRC-03-2024-0048