Compliance Risk Management

Question 1

Mitigation Strategies

Answer 1

1) Controls (predictive and detective, automated and manual)
2) Policies and Procedures
3) Training

Question 2

Risk Assessment

Answer 2

1) Inherent Risk
2) Residual Risk
3) Quantity and quality of risk
4) Trends and direction

Question 3

Inherent Risk

Answer 3

Risk present before controls are applied

Question 4

Residual Risk

Answer 4

Risk present after controls are applied

Question 5

Compliance Management System

Answer 5

The bank’s ability to oversee and control it’s compliance risk