BSBCOM603_TASK1 STUDENT: Xiaolun LIU (14303) Takes corrective action and updates materials as necessary Q The reason of its importance could be concluded as it helps manage risk. A compliance system helps manage risks associated with changing product and service offerings and enacting new legislation to address developments in the marketplace. Otherwise, noncompliance with consumer protection laws may result in the litigation, monetary penalties, and other formal enforcement actions. Q An effective compliance system is comprised of three interdependent elements: Q 1. Board and manage ment oversigh t The Board of Directors is ultimately responsible for developing and administering a CMS that ensures compliance with federal consumer protection laws and regulations. compliance officer compliance committee Q 2. Complian ce program A financial institution should generally establish a formal, written compliance program. In addition to being a planned and organized effort to guide the institution’s compliance activities, a written program represents an essential source document that will serve as a training and reference tool for all employees. A well planned, implemented, and maintained compliance program will prevent or reduce regulatory violations, provide cost efficiencies, and is a sound business step. Policies and procedures Training Monitoring Consumer complaint response 3. Complian ce audit A compliance audit is an independent review of an institution’s compliance with consumer protection laws and Scope of the audit (including departments, branches, product types and third-party relationships reviewed) 12
BSBCOM603_TASK1 STUDENT: Xiaolun LIU (14303) regulations and adherence to internal policies and procedures. The audit helps management ensure ongoing compliance and identify compliance risk conditions. It complements the institution’s internal monitoring system. The Board should determine the scope of an audit, and the frequency with which audits are conducted. Deficiencies or modifications identified Number of transactions sampled by category of product type Descriptions of, or suggestions for, corrective actions and time frames for correction 5. Conclusion In conclusion, this report has analysed the performance of the charity-care organisation, in the report, the internal and external compliance requirements for the charity-care have been discussed. Also the Industry specific compliance requirements have been discussed in the report. And this report addressed the compliance effects for the organisation. The compliance system of the organisation also has been analysed. Part 3 – Written reflection Type of research undertaken: Research internal and external compliance requirements Information security and risk management Analyze qualitative and quantitative information to evaluate compliance management options Prepare a report for senior management identifying an appropriate compliance system for the organization.
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