3) Corporate Risk policy 4) Risk Appetite Statement 5) Corporate Sales policy 6) All corporate policies, procedures and guidelines.
7) Environmental and sustainability reporting - Example of compliance breaches from recent history 1) Example 1: In 2017, Yahoo breached about 3 billion user accounts during 2013 – 2014. Information including: names, email address, telephone numbers, security questions and answers dates of birth. The breach affected the sale price of Yahoo to Verizon by USD 350M Damage to brand image and sales 2) Volkswagen: In 2015, US environment protection agency issued a notice of the clean air act. The agency found Volkswagen has non-compliant TDI diesel engines. 11 million cars were affected from 2009 to 2015. The market cap lost $20 billion (1/3 of market value) immediately. Damage environment 3) CBA: Bank are obliged to report to AUSTRAC cash transaction in excess of AUD 10,000 but failed to report some 53,000 happened in ATM. They agreed to pay the biggest fine in Australian corporate history. - How to model of compliance risk management has changed 1) New compliance risks are identified through integrating with RM framework . 2) Compliance experts use their knowledge to educate business-wide and assist in mapping obligations to practical controls and residual risk assessments. 3) Resources are used in testing where risks are greatest 4) Single risk and compliance register - Compliance risk is interrelated with business ethics and risk culture ( Q3: Discuss compliance risk and its relationship with risk culture ) Ethics guides all decision making whether mandated by laws and policies or not. An ethically focused organisation will be more likely to comply with laws, policies and community expectations, and will support good risk culture reflected in stronger risk governance. Poor ethics will influence risk culture and undermine compliance.
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