Internal Control System and Compliance Department: Key Considerations

The following key points are essential for a role in an internal control system or compliance department:

Risk Management

• The organization has a risk management function that identifies and assesses risks to the business, ensuring proactive mitigation of potential threats.

Internal Audit

• Regular audits are conducted by the internal audit function to ensure the effectiveness of internal controls and compliance with policies and procedures.
• These audits help identify areas for improvement and provide recommendations for enhancing the organization’s overall risk management posture.

Compliance Control

• A robust compliance control system is in place to detect, measure, monitor, and control compliance risk, minimizing the likelihood of regulatory non-compliance.

Reporting

• Timely and qualified fulfillment of internal control procedures is required.
• Regular reports are generated on significant shortcomings that can lead to compliance risks, enabling prompt corrective action to be taken.

Confidentiality

• The head of the Compliance-control service must not have management responsibilities for business lines or employees involved in risk management, accounting, or financial reporting to maintain independence and ensure unbiased decision-making.