Related concepts of compliance management

Compliance means that the business activities of commercial banks conform to laws, rules and standards.

Compliance risk refers to the risk that commercial banks may suffer legal sanctions, regulatory penalties, major financial losses and reputation losses because they fail to comply with laws, rules and standards.

Compliance management department refers to the department, team or post established within a commercial bank to be responsible for compliance management functions.

The goal of compliance management

The goal of compliance risk management of commercial banks is to effectively identify and manage compliance risks, promote the construction of a comprehensive risk management system and ensure compliance management according to law by establishing and improving the compliance risk management framework.

Basic elements of compliance management system

A commercial bank shall establish a compliance risk management system suitable for its business scope, organizational structure and business scale. The compliance risk management system shall include the following basic elements:

① Compliance policy;

② Organizational structure and resources of compliance management department;

③ Compliance risk management plan;

④ Compliance risk identification and management process;

⑤ Compliance training and education system.