Introduction: compliance risk management mechanism must be established on the basis of the “process banks.
In recent years, China’s banking violations cases occurred frequently, caused great losses to the banking sector. From the results of the investigation of the compliance failure is a serious problem, follow established rules, and execution of internal management rules and regulations and operating procedures, the bank’s internal checks and balances mechanism is difficult to effectively play a role, is an important reason for the incident. Its roots as the CBRC Chairman Liu said: almost all Chinese banks still only sector banks, “rather than” process banks “. Therefore, we must “compliance risk” on the three major risks with the banking industry, credit risk, market risk, operational risk, the degree of equal importance to attach importance to.
According to the definition of the new Basel Accord, “compliance risk” refers to: the Bank for failing to follow the laws and regulations, regulatory requirements, rules, self-regulatory organizations to develop guidelines, code of conduct has been applied to the Bank’s business activities, may be subject to legal sanctions or regulatory sanctions, material financial loss or reputation risk of loss.
Abroad, most of the commercial bank has a compliance department, whose responsibilities include compliance risk identification, monitoring, assessment and reporting, to detect and stop the risk of produce and the resulting destruction; comb to integrate the bank’s rules and regulations, and compliance training participate in the bank’s organizational structure and business process reengineering, to provide compliance support for new products. For most of the domestic commercial banks, building compliance risk management mechanism is a long way to go. The most obvious problem is that there is no single compliance department, or its functions by the audit department, legal affairs segment of the bear, and the specific functions of positioning is limited to routine checks carried out in accordance with the requirements of regulatory authorities, how to establish effective co- The regulatory system does not necessary preparations.
I see the banks to build a compliance risk management mechanism, we must first establish a voluntary compliance awareness to overcome the psychology of passive compliance. The compliance of the banking sector stable operation of the internal demand, but also an important part of banking culture. This culture is that when employees come into contact with each transaction, first thought to be a review of the compliance risk. In addition, the compliance culture is also supported by a set of systems, methods and tools, we need to strengthen the rules and regulations of the post-evaluation. The same time, the performance appraisal mechanism as an important part of nurturing a culture of compliance in order to fully reflect the banks to advocate the values of the compliance management and punish violations.
It should be emphasized that the independence of the Compliance Department. Build a compliance risk management mechanisms need to set up a dedicated compliance department, and to ensure uninterrupted compliance department found that the survey questions, it is also subject to regular and independent inspection of the internal audit department.
To be erected in staff awareness of compliance management and control of compliance risks, must be established to report and supervision mechanism. For employees to report irregularities, illegal acts to provide the necessary channels and means, and to establish effective reporting protection and incentives.
Compliance risk management mechanism must be established on the basis of the “process banks. Thoroughly to break the system of the past heritage for many years in a stable and closed market environment, the formation of a single period of planned economy in the financial products sector banks, breaking down the compartmentalization of the various departments, each pipe section of the departmental risk management model, effective way to avoid fragmentation, wrangling with each other phenomenon, the establishment of a unified customer-centric closed process, in order to both good customer service, and control compliance risks, including risks to the principle of optimization, streamlining business processes.