The purpose of this paper is to assist investment company managers in proactively navigating the risky and ever‐changing market and regulatory environment and to provide an outline for a flexible and robust risk‐based compliance management methodology.
The paper makes recommendations on: becoming familiar with best practices in internal controls and regulatory trends, reassessing compliance management goals and objectives, identifying risk scenarios and related compliance events, designing control systems, updating compliance policies and procedures, and conducting periodic reviews of compliance management systems.
The paper reveals that compliance risks have attained a new level of visibility. To minimize potential hazards, current and evolving risks must be identified, documented and effectively managed by investment firms, regulators and legislators.
The paper provides practical advice by a compliance management systems provider and a consultant specializing in compliance and risk‐based due diligence consulting.
