There is no established template for documenting compliance risk. Each institution should develop a risk assessment that fits its risk profile. The components that are commonly used throughout the industry are as follows EXCEPT:
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A. B. C. D.D
The question refers to the components commonly used in documenting compliance risk, and asks which of the following is NOT commonly used:
A. Risk assessment: Risk assessment is a crucial component of documenting compliance risk. It involves identifying and analyzing potential risks that an institution may face, and evaluating the likelihood and impact of those risks. This information is used to develop appropriate risk management strategies to mitigate or control the identified risks.
B. Measuring key risk indicators: Measuring key risk indicators (KRIs) is another important component of documenting compliance risk. KRIs are used to monitor and assess the level of risk in various areas of an institution's operations. These indicators are typically quantifiable and measurable, allowing for the ongoing monitoring of potential risks.
C. Identifying key performance indicators: Identifying key performance indicators (KPIs) is not directly related to documenting compliance risk. KPIs are typically used to measure an institution's performance and progress towards achieving specific goals or objectives. While KPIs can be useful in evaluating the effectiveness of risk management strategies, they are not a core component of documenting compliance risk.
D. Training the leadership of compliance regulation program: Training the leadership of a compliance regulation program is not a component of documenting compliance risk. However, it is an important component of ensuring that an institution's compliance program is effective. Leadership training can help to ensure that compliance policies and procedures are understood and followed throughout the organization, which can help to mitigate compliance risk.
Therefore, the answer to the question is C. Identifying key performance indicators.