BCBS: Compliance risk management is key to financial stability

Arnold Schilder, chairman of the Basel Committee on Banking Supervision (BCBS) accounting task force, has stated that compliance risk is becoming the most important risk driver to credit institutions.

Schilder explained that compliance risk is gaining importance as increasing globalisation, corporate governance of complex institutions and changing laws and regulations create complex situations for international banks. Schilder also questioned whether the compliance framework in place is robust enough to effectively manage these rapidly changing factors, suggesting that developing and implementing a more effective framework “might well be a challenge equal to the implementation of Basel II”.

W