Compliance and Risk departments

Posted By: Tocomply

Compliance and Risk departments - 02/15/08 01:40 PM

Can anyone tell me the different job functions that go with compliance departments and risk departments? It seems that banks have separate departments for compliance and risk and no one clearly defines who should do what. It appears to be more of a control issue.
Posted By: Bartman

Re: Compliance and Risk departments - 02/18/08 07:32 PM

I think this really varies by bank. We're a $750 million 2-bank holding company, and we look at the functions that should be independent of management - compliance, internal audit, and loan review. We rolled them together into a risk management department with reporting to the Audit Committee of the corporate board. So now I serve as risk management officer and I do internal compliance audits each year; a loan review officer reports to me & is responsible for that whole program; and we outsource the internal audit function & I manage those relationships.