Mackinac Credit + Compliance的动态

The FIRST and LAST effect, also known as the serial positioning effect, suggest that people tend to remember items presented at the beginning (primacy) and end (recency) of a list better than those in the middle. In the context of internal audit in the banking ecosystem, understanding this effect can be valuable. Auditors can prioritize reviewing the initial and final stages of processes, such as account opening and closure, as errors or irregularities are more likely to occur at these stages. By focusing on these critical points, auditors can enhance the efficacy of their audits and improve risk management in the banking sector.

A system of effective controls is the foundation for the safe and sound operation of banking organizations. With strong internal controls, banks can ensure that their goals and objectives will be met, and maintain reliable financial and managerial reporting. Effective control testing is crucial to evaluate these internal controls, identify weaknesses, and improve operational efficiency and corporate governance. It also helps banks meet regulatory compliance and prevent fraud. In today's evolving risk management landscape, internal control testing remains a critical process for financial institutions. #internalcontrols #controls #riskmanagement #operationalrisk

In the banking sector, #Compliance, #Risk management, and #Audit are distinct functions with different rules and responsibilities: 1. Compliance: This function ensures that the bank operates within the legal and regulatory framework. Compliance officers monitor and enforce adherence to laws, regulations, and internal policies to prevent violations and maintain the bank's reputation. They work to prevent financial crimes such as money laundering and ensure ethical conduct. 2. Risk Management: Risk management involves identifying, assessing, and mitigating various risks that the bank might face. This includes credit risk, market risk, operational risk, and more. Risk managers develop strategies to minimize potential losses and ensure the bank's stability and sustainability. 3. Audit: Internal audit assesses the bank's internal controls, processes, and systems to ensure accuracy, efficiency, and compliance. They provide an independent evaluation of the bank's operations, identifying areas for improvement and ensuring that internal procedures are followed. External audit involves an independent review of the bank's financial statements to provide assurance to stakeholders. Each of these functions plays a crucial role in maintaining the integrity, security, and stability of the banking sector, but their specific rules and responsibilities differ based on their respective focus areas. #compliance #riskandcompliance #investigations #forensic #audit #riskmanagement

COSO (Committee of Sponsoring Organizations) Framework: This framework ensures risk management, compliance, and operational efficiency in the banking and financial services industry, enabling institutions to achieve their objectives while safeguarding assets. 1. Control Environment: The foundation for internal control, focusing on the tone at the top, ethics, and governance. Example: A bank implements strict code of conduct and ethics training for employees to promote a culture of integrity and compliance. 2. Risk Assessment: Identifying and analyzing risks that could prevent objectives from being achieved. Example: A financial services firm assesses the risk of credit default during an economic downturn and adjusts its lending policies accordingly. 3. Control Activities: Actions taken to mitigate risks and ensure compliance with policies. Example: A bank enforces dual authorization for large transactions to reduce fraud risk. 4. Information & Communication: Ensuring relevant, timely information flows internally and externally. Example: A financial institution regularly shares updated regulatory changes with employees and stakeholders to ensure compliance. 5. Monitoring Activities: Ongoing evaluations to ensure internal controls remain effective over time. Example: A bank’s internal audit team performs regular reviews of loan approval processes to identify any control weaknesses. By applying these five components, banks can better manage risks, comply with regulations, and improve governance and operational efficiency. #COSOFramework #RiskManagement #InternalControl #Banking #FinancialServices #Compliance #SOX

Some banks are still using the "low, medium, high" - 3 lanes of risk methodology to assess risk. SRA and most regulators, believe in a 5-point scale to empower data-driven decisions and show incremental progress each quarter. Learn more about the benefits of "5 Lanes of Risk vs 3" by clicking below! https://lnkd.in/eWxkkcZc #RiskManagement #Banking #ERM #RiskAssessment

5 Scale seems to be best practice for risk and controls in general, however, KRIs probably work best on a 3 scale along with qualitative commentary provided. Also, keep your mathematics simple and always provide good context. #erm #rcsa #kri #dashboardreporting

First edition of the "Neotas Finance, Risk and Compliance Chronicle". Please do take a read of my thoughts on some of the key developments in fin crime compliance that are shaping 2024. Let me know what you think!

The past year saw significant regulatory changes impacting the finance, risk, and compliance sector. Our latest whitepaper, the "Neotas Finance, Risk, and Compliance Chronicle 2024," provides a comprehensive review of 2023 and offers insights into the anticipated regulatory landscape of 2024. Key Highlights: ?Learn from the lessons of 2023, including notable AML fines imposed on major financial institutions.? ?Gain foresight into the compliance challenges and strategic approaches for the year ahead.? ?Explore the implications of new legislative measures, such as the Economic Crime and Corporate Transparency Act. Stay ahead of regulatory trends and equip your team with the knowledge to navigate the evolving landscape. Download the whitepaper today and empower your compliance strategy. ?? https://lnkd.in/giXnYA5H? . . . #AMLCompliance #AMLComplianceUK #AMLChecks #FinancialRegulations?#RiskManagement #DueDiligence #FinancialIntegrity #AntiMoneyLaundering??#RegulatoryCompliance #AMLComplianceSolutions #london #UK #Finance ? Follow Neotas

The Office of the Comptroller of the Currency recently took enforcement action against Wells Fargo due to deficiencies in Wells Fargo's AML internal controls and financial crimes risk management practices. Our blog examines the enforcement action and highlights actions banks must take to avoid similar enforcement actions and fines. #finserv #OCC #WellsFargo #regenforcement #iKinetiqTPOC

"For a financial institution to safeguard itself effectively from the spectres of financial crime, a harmonious blend of strong governance and a comprehensive risk assessment is imperative. By prioritising both, institutions can construct a resilient and adaptable compliance program, fostering a culture of risk awareness and mitigation, and ensuring regulatory compliance" https://lnkd.in/d6VDhx58