Comprehensive Compliance Risk Management System Launched by Leading Financial Institution
A leading financial institution has developed and implemented a comprehensive compliance risk management system on a corporate group basis to ensure effective and efficient risk management. This system takes into account the differences in regulations across various countries, aiming to prevent significant risks that could impact customer protection, market fairness, and transparency.
Advanced Technology Enhances Risk Management Capabilities
The institution has employed advanced information and telecommunication technology to enhance its risk management capabilities. According to JFSA’s Approach to Compliance Risk Management, a risk-based approach is essential for effective compliance risk management. However, the current practices often fall short of this approach, leading to excessive burden on financial institutions (FIs).
Identifying Significant Risks and Developing Action Plans
The institution has identified significant risks and their sources through comprehensive and concrete risk assessments, and has developed concrete action plans to mitigate and control these risks.
JFSA’s Supervisory Approach
To ensure compliance with regulatory requirements, JFSA will implement a wide-ranging intelligence gathering process, including:
- Discussions with FI management, officers, and employees
- Gathering information from various sources such as news stories, complaints, and scandals
The supervisor will set monitoring issues based on the profiling of risks related to:
- Customer protection
- Market fairness
- Transparency
- Financial system
- FIs
In-depth discussions will be held with FIs to share and deepen awareness of risks.
Next Steps
JFSA plans to:
- Share its views on compliance risk management and further understand FI practices
- Gather information on each FI’s practices in compliance risk management and share major findings and common challenges for compliance risk management with FIs and industries
- Develop necessary measures to enhance industry-wide compliance risk management practices
- Consider methodology to evaluate FIs’ practices
Contact Information
For more information, please contact [Name], JFSA’s spokesperson.