asset write-offfinancial accounting outsourcing

What is the role of the compliance department?

Compliance department in business entities ensures the entire business operations and transactions carried out as per the terms & rules set by the governing body. In Australia, commencing a separate compliance department for every business is essential in order to control the risk and financial crimes in a business transaction.

In addition to the above-mentioned brief on the compliance department, the main intention of commencing such department in a business is to gain customer confidence. The role of the compliance department breaks into two levels.

Level 1: Compliance with External Rules – Rules set by the governing body for the entire organization/business entity.
Level 2: Compliance with Internal Systems – Implementing regulations and controls within the organization/business entity to achieve rules imposed by the governing body for the entire organization/business entity.

In general, the financial compliance services have a responsibility in 5 areas, those areas listed below.

  • Identification
  • Prevention
  • Monitoring and Detection
  • Resolution
  • Advisory

The officers of the compliance department work with the business management and also with the working staffs to pinpoint the possible risk and to identify the right path to manage those regulatory risks.

Key Roles Played by the Compliance Department

  • As mentioned above the compliance department ensures the entire business operations and all financial services of the organizations/business entity carried upon the external rules and internal controls
  • Apart from managing the business operations, the compliance department should possess the ability to predict the potential risks of business and should able to provide essential advice to management to overcome or to avoid such risk factors.
  • The compliance department moves from the role of advisory to the active risk management services right after the 2008 financial crisis. To be frank, the 2008 financial crisis led the business entity to approach expertise financial services compliance consultants to tighten the regulatory scrutiny and regulations.aid.

Leave a Comment

Play at the best australian casinos online at Top casinos with huge welcome bonuses.
asset write-offfinancial accounting outsourcing