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Tackling risk‐based compliance

Kevin Ludwick (Head of Regulatory Services, QUMAS, Cork, Republic of Ireland)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 1 October 2006




This paper seeks to recommend a way for the compliance function to identify, monitor, and report the risks it faces to the firm's management.


Outlines the principal challenges in setting up a risk reporting system and recommends a three‐phase approach for implementing such a system.


Developing a risk reporting system presents three challenges: designing a reporting system driven in real time by compliance work with a varied data set, organizing the information and processes of the compliance function so they can be automated, and arranging the presentation of risk to reflect complex organizational structures. The three phases for implementing such a system are gaining management sponsorship, looking for pilot projects to score quick victories, and rolling out the program.


An overview of compliance risk reporting systems that stresses the importance of collecting the right data in an automated fashion.



Ludwick, K. (2006), "Tackling risk‐based compliance", Journal of Investment Compliance, Vol. 7 No. 4, pp. 61-64.



Emerald Group Publishing Limited

Copyright © 2006, Emerald Group Publishing Limited