After a compliance officer develops a base of knowledge of regulations, he or she must begin the art of applying regulations in a risk management environment.
Which of the following is NOT out of a few things to be kept in mind when determining what to do FIRST?
While calculating the institution's consolidated risk profile is indeed a crucial task in risk management and compliance, it is not necessarily something to be done first when applying regulations in a risk management environment. Before diving into specific risk calculations, a compliance officer must first understand their advisory role, engage with business units, understand the bank's risk tolerance, and analyze regulatory requirements to add value to the decision-making process. These preliminary steps are essential for creating a solid foundation upon which more detailed risk profiles can be built later.
Take risk never know the out come of being in a open discussion