Heads Of Compliance Need To Become Risk Managers, Expert Panel Says

In a seminar hosted by Quimas Software, former head of compliance and SEC official Michael Blane and Lindsay Thomas, a former senior FSA official, outlined the evolving role compliance officers need to take as the regulatory environment continues its move

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In a seminar hosted by Quimas Software, former head of compliance and SEC official Michael Blane and Lindsay Thomas, a former senior FSA official, outlined the evolving role compliance officers need to take as the regulatory environment continues its move toward a principles-based approach.

While Michael Blane argued that compliance officers ought to be able to take a narrow view of regulatory risk, they must maintain a broad enterprise-wide understanding in order to have the ability to support management properly.

Lindsay Thomas told the 34 senior compliance professionals from 24 financial organizations who attended the seminar that compliance officers are already under pressure to work in a risk-based way but they may have to restructure their approach to reputational risk.

“Regulators on both sides of the Atlantic are pressing firms to manage regulatory risk more robustly. Senior management need to engage with compliance officers to characterize their regulatory risk appetite and direct their resources to mitigate the risks they do not want. Doing this without clear models and appropriate infrastructure is impossible,” says Kevin Ludwick, Head of Regulatory Services at QUMAS and seminar chairman.

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