Hi there! Could you tell me what would be a Compliance officer's role in all those activities (i mean icaap ilaap credit market operational risk capital requiremnts calculations), cause you know that all those requirements come from Prudential Rules which is certainly an area of responsibility of a Compliance Officer but when it comes to the ground works you say that it is a risk manager who should be responsible for all that, how to differentiate these activities overlapping on two roles (compliance and risk management)?
While it is true that risk management regulations are laws, they are in the sole responsibility of the risk management officer. A compliance officer is tasked with overseeing a different set of laws, those concerning human conduct, fraud prevention etc. Does that clarify?
@@FinAndEcon well.. maybe partly, here in the AIFC we have got Prudential Rules which are for the most part are based on Basel Stansards and as a regulatory Compliance officers we are tasked with making sure that a financial institutions' activities are reconsiled against those regulatory requirments...
@@diyasmoldabayev2280 I think you are right. This reminds me of the three lines of defence model. While risk managers are located in the second line of defence and in charge of operationalising risk management, compliance officers come in in the third line, checking the 2nd lines work. So my first answer was only partly right. Does that help?
@@FinAndEcon yeah, then it puts compliance function on the same level as internal auditor function, some regulators don't require companies mandatorily to have an internal auditor in the institution but instead they require a compliance officer, then it makes sense that a compliance officer is expected by the regulators to execute a function of an internal auditor as well (perhaps parlty)
great video! but when is the video about stresstesting being released?
Great video. Do you have a plan to make a video about ILAAP as well?
I will add that to my list :)
Hi there! Could you tell me what would be a Compliance officer's role in all those activities (i mean icaap ilaap credit market operational risk capital requiremnts calculations), cause you know that all those requirements come from Prudential Rules which is certainly an area of responsibility of a Compliance Officer but when it comes to the ground works you say that it is a risk manager who should be responsible for all that, how to differentiate these activities overlapping on two roles (compliance and risk management)?
While it is true that risk management regulations are laws, they are in the sole responsibility of the risk management officer. A compliance officer is tasked with overseeing a different set of laws, those concerning human conduct, fraud prevention etc. Does that clarify?
@@FinAndEcon well.. maybe partly, here in the AIFC we have got Prudential Rules which are for the most part are based on Basel Stansards and as a regulatory Compliance officers we are tasked with making sure that a financial institutions' activities are reconsiled against those regulatory requirments...
@@diyasmoldabayev2280 I think you are right. This reminds me of the three lines of defence model. While risk managers are located in the second line of defence and in charge of operationalising risk management, compliance officers come in in the third line, checking the 2nd lines work. So my first answer was only partly right. Does that help?
@@FinAndEcon yeah, then it puts compliance function on the same level as internal auditor function, some regulators don't require companies mandatorily to have an internal auditor in the institution but instead they require a compliance officer, then it makes sense that a compliance officer is expected by the regulators to execute a function of an internal auditor as well (perhaps parlty)