The Role of Risk Management and Compliance in Banking Integration

This article explores an important but little studied dimension of the ongoing transformation of banking markets: the growth of risk management and compliance as key governance functions and the focus on risk as a foundation stone for regulatory strategy. The developments in risk and compliance are in part mandated by government regulation, but also reflect practices and norms developed in the private sector. Parallel developments reflecting convergence of norms and practice are observed in banking markets around the world.