The compliance department ensures that the company complies with external standards and internal controls. In the financial services field, the compliance department is committed to achieving key regulatory goals to protect investors and ensure that the market is fair, efficient and transparent. They also seek to reduce systemic risks and financial crime. These objectives are designed to support consumer confidence in the financial system. Financial services organizations are also subject to management publicity, client communication, conflicts of interest, client understanding and enforceability, client transactions, client assets and funds, and regulatory business rules violating rules and errors. TOP TIPS The task of the compliance department is to closely monitor whether financial services companies comply with external regulations and internal controls. can also identify the risks faced by the organization and recommend how to avoid or resolve these risks. The 2008 financial crisis led to increased scrutiny and supervision, prompting the compliance department to shift from a consulting role to active risk management. Knowing the compliance department the compliance department usually has five responsibilities: identification, prevention, monitoring and detection, resolution and advice. The compliance department identifies the risks faced by the organization and makes recommendations on how to avoid or resolve these risks. Implement controls to protect the organization from these risks. Compliance monitors and reports on the effectiveness of control measures in managing the organization’s risk exposure. The department also resolves any compliance issues that arise and advises the company on rules and controls. The compliance officers in the compliance department are responsible for their employers to identify and manage regulatory risks together with management and employees. Its objective is to ensure that the organization has internal controls that can adequately measure and manage the risks it faces. The Compliance Officer provides internal services to effectively support the business areas in fulfilling their responsibilities for compliance with relevant internal laws, regulations and procedures. The compliance officer is usually the company’s general counsel, but this is not always the case. Industry regulators authorize and monitor compliance rules by investigating, collecting and sharing information, and imposing appropriate penalties. The factors used to determine risks within an organization include the nature, diversity, complexity, scale, number, and scale of its business and operations.