In today’s challenging business and regulatory environment, it is interesting to note that outsourcing provide banks with competitive benefits. However, it is important to understand that by absorbing efficiency, banks are also absorbing risks. This risk should be addressed by implementing effective compliance and risk management strategy and also use tailored operational risk insurance.
Ethical behaviour and compliance to regulatory requirement are equally important. It must co-exist in any organization. Today, most bank will have its own ‘Compliance Department’ to take care and monitor regulatory requirement. They will also have their own ‘Code of Conduct’ or ‘Core Value’ which serves as a guide to the staff on the expected virtuous behaviour.