Building a Compliance Framework

Module 1: Statutory Framework & Mandate

This opening module of Compliance Risk Framework training establishes the legal and regulatory basis for the function's existence.

• The Regulatory Landscape: mapping the specific statutory requirements (e.g., UK FCA/PRA, GDPR, or sectoral-specific legislation) that necessitate a compliance function

• Defining the Mandate: distinguishing between "advisory" compliance (guidance) and "monitoring" compliance (oversight) – SYSC 6

• Independence and Authority: the evidentiary requirements for demonstrating functional independence from the front office or commercial operations

• The "Three Lines of Defence" Model: defining the compliance function as the second line of defence

Module 2: Risk Assessment & Methodology

A compliance function must be risk-based to be effective. This section covers the data-driven approach to identifying focus areas.

• Establishing a Risk Universe: identifying all regulatory risks applicable to the entity

• Risk Scoring (Impact vs. Probability): utilising a quantitative matrix to prioritise resources

• Gap Analysis: assessing the "As-Is" state against the "To-Be" regulatory requirement

• The Compliance Monitoring Plan (CMP): designing a schedule based on the findings of the risk assessment

• EXERCISE - The "Risk Heat Map" Live Build Goal: Practice the quantitative assessment of risk

Module 3: Policy, Process, and Controls

This module addresses the "How" of compliance - turning legal requirements into repeatable business processes.

• Policy Hierarchy: differentiating between high-level principles, detailed policies, and Standard Operating Procedures (SOPs)

• Designing Effective Controls: Preventative Controls: Automation or "hard" stops in a process

• Detective Controls: Reconciliations and post-event reviews

Evidence of Compliance: establishing the "audit trail" required to prove to regulators that controls are functioning as intended

Training & Culture: methods for disseminating policy and measuring employee comprehension

EXERCISE – Reflection and Self-assessment – Where do you identify weaknesses – group-source three positive actions to strengthen your position.

Module 4: Monitoring, Reporting, and Remediation

The final module of this compliance monitoring framework course focuses on the feedback loop: finding issues and fixing them.

• The Monitoring Cycle: Sampling and Testing

• Finding Identification

• Management Response

Management Information (MI) & Reporting: creating fact-based reports for the Board or Audit Committee. Key Performance Indicators (KPIs) vs. Key Risk Indicators (KRIs)

Handling Breach Management: the evidentiary process for identifying, logging, and reporting regulatory breaches.Continuous Improvement: Using "Root Cause Analysis" to ensure remediation addresses the source of the failure, not just the symptom

Summary and Close

Training Objectives

• Identify the core components required for a comprehensive and effective compliance framework.

• Evaluate the maturity of existing governance structures against industry best practices.

• Apply risk assessment methodologies to prioritise compliance activities based on organisational impact.

• Design preventative and detective controls that address specific regulatory obligations.

• Demonstrate how to document and manage compliance breaches through a structured issue management process.

• Navigate the complexities of training and communication to ensure compliance risk framework adoption across the business.

Training Course Summary

This intensive half-day training examines the critical components of a modern compliance framework. The compliance risk framework course covers the initial risk assessment to the management of ongoing issues. Through interactive discussion, delegates will explore how to integrate governance, policies, and monitoring into a cohesive system. Sessions are for professionals who need to build or refine an evidence-based framework that satisfies both internal stakeholders and external regulators.