Risk Management for Financial Compliance

Risk Management for Financial Compliance

Q.1. Knowing that the line of business wants to proceed with the product launch, would you, as a compliance officer advise XYZ Bank to move forward

• Provide details for your response
• Comment on your evaluation of the risk versus the reward
• If yes (launch) how would you communicate that to the line of business? To the regulators?
• If no (do not launch) how would you communicate that to the line of business? To the regulators?

2. 2. You have learned about two of the most common compliance failures in the Healthcare industry, HIPPA/Privacy and False Claims/Fraud. You have just been named the Chief Compliance Officer for Potomac Health. Potomac is a small firm made up of 14 physician and health laboratory practices San Diego, CA. As you begin your role as the new head of Compliance for Potomac, the board has requested you to provide them with your goals for the first 90 days. The board is particularly interested in a fresh perspective on the compliance risk profile of Potomac.

Please provide your action plan for your first 90 days in this leadership role that will enable you to provide your board an informed perspective of the Potomac’s compliance risk profile.

3. 3. You have learned about the anti-money laundering failures at HSBC and many of the opportunities to reduce their risk prior to being assessed major fines and ensuring material costs of remediation and reputational damage.

• As you look back at their history of failures and failures since their original regulatory enforcement by the OCC and then the Department of Justice:
  • What actions do you think they could have taken prior to prevent the degree of impact these failures had on their company?
  • What actions could they have taken to reduce their compliance risk more broadly beyond anti-money laundering?