Legal risk and compliance risk in the banking industry in South Africa
Abstract
The Basel Committee on Banking Supervision has defined operational risk, legal risk and compliance risk. However, the definitions might not be adequate for countries with a hybrid legal system, such as South Africa. This study aims to provide a practical solution to the problems faced by countries with a hybrid legal system wishing to comply with the Basel Committee’s standards. It is argued that compliance, compliance risk and regulatory risk should all be viewed as constituent components of legal risk, and in turn necessarily also of operational risk in a hybrid legal system. Legal risk is a wide concept which includes all aspects of a legal system, while compliance risk is a narrower concept which only includes the codified aspects of a legal system. Legal risk therefore includes compliance risk. However, the opposite is not true as compliance risk does not include legal risk, and the two concepts are decidedly shown not to be synonymous in a mixed legal system.
Collections
- Law [826]
Related items
Showing items related by title, author, creator and subject.
-
The effectiveness of the regulatory compliance monitoring process for banks in South Africa
Mathisa, C. (North-West University (South Africa), 2020)The primary objective of this study is to investigate the effectiveness of the regulatory compliance framework for banks in South Africa. South African Reserve Bank (SARB) fined the major banks as the result of their ... -
Mechanisms to identify synergies between compliance and operational risk functions
Mazula, Wandile (2016)Academic literature is limited on how to coordinate the compliance and operational risk functions in organisations. The functional overlap between these two functions in financial institutions, such as banks, may result ... -
Self-regulation and compliance to type I and type II diabetes medication
Nell, Jeanette Christina (2014)Diabetes mellitus is a complex disease that requires constant patient compliance to diet, life style, glucose level monitoring and medication. Non-compliance to medication can be associated with the development of ...