Write short notes on the following: (iii) Compliance Risk
CS Professional · Secretarial Audit, Compliance Management and Due Diligence · PYQS · June 2018
Write short notes on the following: (iii) Compliance Risk
Answer & Explanation:
Compliance risk is the current and prospective risk to earnings or capital arising from violations of, or non-conformance with, laws, rules, regulations, prescribed practices, internal policies, and procedures, or ethical standards. This risk exposes the institution to fines, civil money penalties, payment of damages, and the voiding of contracts. Compliance risk can lead to diminished reputation, reduced expansion potential and an inability to enforce contracts.
Topics: Compliance Management
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