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This focused two day course is designed to equip delegates with a thorough understanding of the essentials of compliance monitoring and how they can be applied most effectively in the context of a more principles-based regulatory regime.

The programme is not intended for experienced Compliance specialists but for new entrants to a Compliance, Risk, Monitoring or Auditing role.

Key issues addressed will include:

• Getting to grips with the FSA's more principles-based philosophy, objectives and language


• Examining the implications of the FSA's Risk Assessment Framework and Arrow process for your firm


• Evaluating the various risk based monitoring techniques and how they can be used to most effect


• Aligning your organisation's internal controls to business risks and regulatory expectations


• Making effective use of risk registers, risk mapping and other assessment tools


• Developing a robust risk mitigation programme


• Constructing a compliance plan capable of dealing with identified and emerging risks


• How to assist senior management in discharging their regulatory obligations


• Identifying current FSA priorities and regulatory 'hot spots'


• Practical steps to reducing your organisation's regulatory risk profile

This highly practical event will use focused presentations, case studies, worked exercises and interactive discussions to define and illustrate the key steps to effective risk-based monitoring.

Day One
Sessions commence: 9.30am
Close of day: 4.30pm

Day Two
Sessions commence: 9.30am
Close of course: 4.30pm

DAY ONE

Risk in the Regulatory Context

• What the FSA means by risk
• The Financial Risk Outlook
• Understanding the FSA’s priorities
• Examining the FSA’s Risk Assessment Framework
• Why a risk based approach?
• The Arrow Project – what it is and what it entails
• How the FSA manages and monitors risk
• The implications of FSA Principle 3
• The FSA’s intentions and objectives, and what this means for regulated firms
• What the SYSC rulebook says regarding risk

Assessing the Risks Your Business Presents to the FSA

• How the FSA goes about its risk assessment
• How delegates might apply key elements of this process within their own organisations
• How to compare risks on a consistent basis
• What is the spectrum of risks
• Tools for identifying risk
• How to mitigate risks effectively

Practical Exercise: Risk Identification

• The various risk identification tools used by the FSA
• How delegates can apply these in their own business

Aligning Internal Controls to External Risks

• How firms can translate the regulator’s ‘risk language’ and processes into their own risk management framework and approaches
• Defining risk appetite
• The international dimension and risk
• The international regulatory outlook
• European directives
• Sarbanes-Oxley

Practical Exercise:
Risk Assessment and Mitigation

• Compile and prioritise a list of the biggest risks the firm presents to the FSA
• Prepare an inventory of key data and information to be requested from the firm Formulate recommendations for mitigating the risks identified

Assessing Risks Facing Your Business

• How to identify risks
• Where to look
• What are the key issues?
• How to create a risk matrix and a risk register
• How often should risks be reviewed
• How to evaluate risk
• What are the 45 risk elements?
• Risk mapping
• How to measure and prioritise risks
• Business and compliance culture

Q & A and Summary

DAY TWO

Effective Approaches to Risk Mitigation

• Reviewing the range of approaches to risk mitigation
• How to reduce the impact of risks
• How to reduce the probability of regulatory harm
• What is an acceptable level of risk?
• Proportionate and effective programmes
• Means of measuring the effectiveness of risk reduction

Case Study:
Developing a Risk Mitigation Programme

• Practise and apply risk mitigation principles and approaches within a realistic business scenario
• Producing a risk mitigation programme for a fictitious business

Preparing a Compliance Plan to Address Identified Risks

• Developing a comprehensive programme to control known risks
• How to identify new, emerging and horizon risks.
• What is required in the plan
• Responsibility and resource requirements
• Monitoring and reporting methods
• Regularity of review

Helping Senior Management Meet Their Responsibilities with Regard to Risk

• How can you go about managing, controlling and monitoring risks in a competitive industry with stakeholders who want a return on their investment in your business and highly incentivised management?
• Defining your firm’s appetite for risk and the controls to match it?
• Generating meaningful, and commercially useful, management information
• How to escalate risk issues
• Corporate governance

Delivering Cost Effective Monitoring Systems and Controls

• The range of monitoring techniques and how they can be used to best effect
• Use of key performance indicators
• Desk based monitoring of risks
• When to undertake a monitoring visit
• How to make the monitoring visit a success and value for money

FSA Regulatory Update – Current Hotspots and Priorities

• External factors
• Organisation
• Corporate governance
• High risk products
• Treating customers fairly
• Systems and controls within networks
• Financial promotions
• Complaints handling
• Training & competence
• Advised vs non advised sales
• Payment protection and loans
• Post MiFID considerations

Final Q & A and Concluding Remarks