OSFI considers an effective RCM framework to be an essential component of an overall risk management program that provides the means by which a FRFI satisfies itself it is in compliance with applicable regulatory requirements. (iii) RCM FrameworkĪ RCM framework refers to the structures, processes and other key control elements through which a FRFI and its subsidiaries manage and mitigate regulatory compliance risk inherent in their activities enterprise-wide Footnote 3. Regulatory requirements are applicable to the FRFI or a subsidiary worldwide that require the FRFI or subsidiary to do (or prohibit it from doing) certain things or to act or conduct its affairs in a particular manner. It does not include risk arising from non-conformance with ethical standards. (ii) Regulatory Compliance Riskįor the purposes of this guideline, regulatory compliance risk is the risk of a FRFI's potential non-conformance with laws, rules, regulations and prescribed practices ("regulatory requirements") in any jurisdiction in which it operates. The term "Regulatory Compliance Management" (RCM) in this guideline refers to the set of key controls through which a FRFI manages regulatory compliance risk. Definitions (i) Regulatory Compliance Management (RCM) (vi) Role of Internal Audit or Other Independent Review Function.(iv) Independent Monitoring and Testing Procedures.
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