Management and Regulation Risk- Tutors India

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MANAGEMENT AND REGULATION RISK
An Academic presentation by Dr. Nancy Agens,
Head, Technical Operations, Tutors India
Group www.tutorsindia.com Email
info_at_tutorsindia.com
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Today's Discussion
OUTLINE
In Brief Introduction Importance of Regulatory
Risk Management What is Compliance Risk
actually The Best Practices for Internal
Enforcement Risk Management How to Suggest
Companies to Obey what is Externally Mandated
Conclusion
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In Brief

• Global Financial crisis has contributed to
  heightened significance of regulatory risk
  management. Enforcement risk is an entity's
  inability to comply with laws and regulations,
  procedures, policies, legislation and standards.
  Effective policies for internal risk management
  are to ensure that people are aware of the
  demands and follow guidance. Companies should be
  recommended to collaborate with third-party
  organizations, implement IT in especially data
  analytics, and control the product life cycle
  Framework in order to conform to external
  mandates.

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Introduction
Regulatory risks are key worry nowadays for
company owners. After the Financial crisis, the
federal government and other regulatory
authorities have increasingly involved in the
creation and implementation of policies for
corporate.
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Importance of Regulatory Risk Management
Recent regulatory changes focusing on enhanced
capital adequacy, liquidity, accountability and
customer safety put greater importance on
successful Mechanisms for risk Management. The
financial crisis highlighted significant
weaknesses in bank and risk control
approaches. Risk Management and avoidance at
both business and operation level, details of
record storing and difficulty maintaining them
deserve far more consideration. Practice
demonstrates that the accuracy and credibility of
the data should not be taken lightly and it may
be expensive to get it wrong. Contd..
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Figure 1
(mckinsey, 2020)
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What is Compliance Risk actually?
There are four specific risk types financial,
operational, regulatory and strategic all
mitigated by internal controls. Compliance
vulnerability is the failure of an entity to
conform to laws and regulations, protocols,
practices, legislation and mandates. Both
businesses pose regulatory enforcement threats,
which ensures their own corporate rules and
practices are not met. The secret to mitigating
such threats is to implement controls routinely
that ensure that the company satisfies its
internal and external specifications. Contd..
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Figure 2 (eltoma-
global, 2020)
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The Best Practices for Internal Enforcement Risk
Management

• You ought to provide clear and well-reported
  processes and practices.
• Constant preparation from top to bottom is then
  necessary.
• At the backend, you need to check cyclic
  check-ins on specific events to ensure that
  people are upholding the guidelines and looking
  for patterns.
• Are their patterns and behaviors that display
  scarcity of conformity? Do you need any more
  Guidance for people?

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How to Suggest Companies to Obey what is
Externally Mandated?
A number of companies are falling because of lack
of funds or adequate expertise to conduct the
enforcement Research necessary to handle such
level of risk. One successful approach of
handling this challenge is taking advantage of
established third-party organizations. You
should get temporary staff to help work around
the regulatory criteria, using a varied cost
rather than a fixed cost Framework. Information
Technology, especially data analytics has a huge
role to play in spotting the risk areas for the
practices of management and regulations. Contd..
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It is obvious that the future market gains from
improved Data Control and Management. With more
efficient data preservation and quality control
techniques, businesses will gain enhanced risk
reduction and decreased data storing expenses, as
well as largely expanded regulatory
enforcement. Effective benefit of the data life
cycle management system will allow companies to
control expenses, maintain the correct records,
and meet regulatory criteria for
enforcement. You need to recognize your risks
and then try to handle the risk proactively and
purposefully by internal controls. Contd..
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Figure 3
(raconteur, 2020)
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Conclusion
Finally, we can say that regulatory risk
Management relies on the importance of the
inside data of the records generated, its
interpretation and assessment. Where data
accuracy is insufficient, a good base for
handling risk and compliance is missing. Top
management and boards should pay attention to
these factors.
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