Governance, Risk and Compliance (USD)

Description

Effective Governance, Risk and Compliance (GRC) practices are essential to achieving and maintaining public trust and confidence in financial services, which are critical to the proper functioning of the sector and the economy. Poor GRC can contribute to bank failures, which can pose significant public costs. Such failures also have the potential to impact on any applicable deposit insurance system, and there is the possibility of broader macroeconomic implications, such as contagion risk and impact on payment systems. This was illustrated in the financial crisis that began in 2008. From a financial industry perspective, GRC involves the way the business and affairs of a firm are governed by its board and senior management, including how they: • set the firm’s strategy and objectives • determine the firm’s risk tolerance/appetite • operate the firm’s day-to-day business • protect the interests of depositors, meet shareholder obligations, and take into account the interests of other recognised stakeholders, and • align corporate activities and behaviour with the expectation that the firm will operate in a safe and sound manner, with integrity and in compliance with applicable laws and regulations.