. . . John Alan James, executive director of the Pace Global Center for Governance, Reporting & Regulation, notes that “the mess that we see at HSBC, JPMorgan Chase, Facebook, even LIBOR, are perfect examples as to how boards, chief executive officers, and even business-unit managers [in banks and nonbanks] have not recognized that it is the compliance arena that many, if not most, of the newly discovered risk areas are coming from.”
He points out that with risk management, compliance, and internal audit, “the basis for success is sound policies and procedures, as well as a highly efficient monitor-and-test culture.” This combination is effective, he says, because of the checks and balances. Compliance monitors and tests the business units, internal audit monitors and tests both, “and the chief risk officer is apprised daily on what the testing is saying about the effectiveness of the policies and procedures.”
To effectively deal with compliance issues, James says, the Association of International Bank Auditors and Pace University’s Lubin School of Business now offer a six-month program leading to a new Certified Compliance and Regulatory Professional certificate. “The program,” he says, “is designed to help hedge funds, asset managers, brokers, and dealers understand the more than 100 new regulations emanating from Dodd-Frank.”
Read the article on CFO.com.