11.1 Compliance management

Question 1

All organisations have to comply with a range of l____ and r______________. Non-compliance can have serious consequences including f______, legal liability suits and loss of r__________.

Answer 1

laws
regulations
fines
reputation

Question 2

Compliance management and risk management are linked because

• many laws and regulations relate to the practice of r______ m__________
• whenever theere are laws and regulations there are c__________ risks that must be managed

Answer 2

risk management

compliance

Question 3

Compliance management exists to help prevent n___-compliance, u____ -compliance and o___-compliance. Over-compliance is a problem because it is unnecessarily costly and may reduce the e___________ and effectiveness of an organisations’ processes and procedures.

Answer 3

non
under
over
efficiency

Question 4

An organisation may have a s_________ compliance function. The structure of compliance management roles and responsibilities with an organsation varies according to its nature, scale and c_________.

Answer 4

specialist

complexity

Question 5

The b______ of an organisation has a key role in overseeing its compliance management activities. The board should seek a_________ that compliance management arrangements are effective and appropriate.

Answer 5

board

assurance

Question 6

All employees, especially m________, have roles and responsibilities in relation to compliance management. The specific nature of these roles and responsibilities depends on the business unit or f________ that they work within and their job d_________.

Answer 6

managers
function
description

Question 7

The concept of risk-based compliance monitoring helps an organisation to allocate its compliance monitoring r_________ in a cost-effective way. The idea is that the greatest amount of resource is devoted to the largest compliance risks, such as the risk of c_________ sanction. Lesser amounts of monitoring resource are devoted to smaller compliance risks.

Answer 7

resource

criminal

Question 8

A range of tools may be used to support the compliance management activities of an organisation, including compliance management policies and procedures, compliance i______ assessments, compliance g___ analyses and action plans, compliance reports and establishing an appropraite compliance c_______.

Answer 8

impact
gap
culture