Compliance Monitoring

5.5 CPD

R537.56

Monitoring is a crucial systematic process of collecting, analyzing and using information to ensure compliance goals and objectives are met sufficiently, to avoid penalties or reputation damage. Correct monitoring is one of the most critical elements of an effective ethics and compliance program in an organisation, yet is often only done by junior staff and for appearances only. The outcome for this learning unit is to understand how to perform compliance monitoring in a practical manner as it should be undertaken to bring a real return on investment for any organisation.

Description

Focus Area

Knowledge:

  • Discuss the planning process related to monitoring and the influence of a risk-based approach on the planning process;
  • Discuss the compilation of a monitoring programme/plan. The discussion should include the content of a monitoring programme/plan, e.g. objectives, scope, etc.;
  • Discuss the purpose of monitoring;
  • Discuss the different types of monitoring and the most appropriate monitoring methodologies applicable to the various types;
  • Discuss the various factors which influence the sample sizes selected;
  • Discuss what information compliance monitoring work papers and documentation should include;
  • Discuss the importance of tracking of the results of compliance monitoring;
  • Discuss the differences between monitoring done by various stakeholders;
  • Discuss the frequency of monitoring, e.g. daily, continuous;
  • Explain the use of Key Risk Indicators (KRI’s) and factors to bear in mind during the design and set-up of KRI’s.

Practical:

  • Develop a detailed compliance monitoring programme/plan for the compliance planning period, typically annually.
  • Develop a compliance monitoring programme/plan for a longer term (typically 3 years) at a compliance monitoring/strategic level.
  • Develop a monitoring programme/plan to achieve the objectives of monitoring.
  • Prepare compliance monitoring working papers as appropriate for a given scenario.
  • Evaluate sample monitoring working papers and identify good practices, short comings and inconsistencies.
  • Develop a risk-based compliance monitoring programme/plan that is appropriate to the organisation’s business activities and the compliance risk profile, specifically in respect of routine and independent monitoring and formal and informal monitoring.
  • Apply appropriate tests of controls, e.g. adequacy and effectiveness testing using appropriate monitoring techniques such as walk-through tests, interviews and more detailed testing.
  • Use appropriate monitoring sampling methods and sizes.
  • Analyse the compliance monitoring findings and draw valid conclusions.
  • Produce compliance monitoring reports as appropriate for the type of monitoring conducted.
  • Distribute reports in accordance with the organisation’s policies and procedures.
  • Develop a follow-up/track tracking plan for compliance risks and exposures that were identified in terms of compliance monitoring and reporting undertaken.

Who should register?

Financial planners, financial advisors, para-planners and business owners will benefit from enrolling for this course.

CPD information

5.5