Module Seven - Compliance and Change

Question 1

What do change and compliance do to each other

Answer 1

Mutually affect each other

Question 2

What have to be checked at the start of a change project

Answer 2

Regulatory mandates

Question 3

What has to be assessed when regulations change

Answer 3

Business Operations

Question 4

What is governance

Answer 4

The layer above compliance - The act of governing, exercising power - Action by executive bodies Parliament, Courts etc.

Question 5

What two things does governance originate from

Answer 5

1. Economics - Corporate Governance 2. Political Science - State Governance

Question 6

What does OMP stand for

Answer 6

O - Organisation (steering groups to manage change) M - Management (Establish Roles & Responsibilities) P - Polices (create Frameworks)

Question 7

What does compliance mean

Answer 7

Conformity - Acting to a set of standards or regulations

Question 8

What is regulatory compliance associated to

Answer 8

Individuals, Systems, Entities

Question 9

What is compliance becoming for companies

Answer 9

A beast

Question 10

What is Sarbanes Oxley regulating

Answer 10

Storage of electronic records

Question 11

Which regulation is for the Storage of electronic records

Answer 11

Sarbanes Oxley

Question 12

What is Turnbull Report regulating

Answer 12

Risk Management

Question 13

Which 2 regulations are for Risk Management

Answer 13

Turnbull Report & Basel II

Question 14

What is Basel II regulating

Answer 14

Risk Management - Banks and Financial Institutions

Question 15

What is IRFS regulating

Answer 15

Accounting Standards

Question 16

Which regulation is for Accounting Standards

Answer 16

IFRS

Question 17

What is FSA regulating

Answer 17

Mortgages

Question 18

Which regulation is for Mortgages

Answer 18

FSA

Question 19

What does the data protection act do

Answer 19

Protects peoples data - key in todays technology environment

Question 20

What is VAR and what does it mean

Answer 20

Value At Risk - The value of money after factoring in risk

Question 21

Which type of company needs to pay close attention to VAR

Answer 21

Banks

Question 22

What is RAROC and what does it do

Answer 22

Risk Adjusted return on Capital - Balances return with risk measurements

Question 23

What is ROVAR and what is it for

Answer 23

Return on value at risk - Utilises estimates on future returns variations

Question 24

What is the Monte Carlo simulation

Answer 24

A problem solving technique used to approximate the probability of certain outcomes by running multiple trial runs using random variables

Question 25

What is money laundering

Answer 25

A criminal attempt to hide the proceeds from a theft (drug trafficking, fraud, terrorism)

Question 26

What are the three steps of money laundering

Answer 26

1. Placement - funds enter the financial system 2. Layering - Concealment of source through complex layers of transactions designed to disguise 3. Integration - Putting illegal funds back into legal systems

Question 27

What type of organisations are most effected by money laundering (6 with a but)

Answer 27

Banks, insurers, accountants, auditors, lawyers, stock brokers but it can happen to companies