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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 in oversight gaps or unintentional duplication. This paper describes a study on the overlap between these two functions in the second line of risk and control defence. A number of documents were analysed including relevant Basel Committee documents; South African banking legislation and regulations; integrated annual results, risk and capital reports of the four largest South African (the Big Four) banks; as well as internal operational risk and compliance documents of one of the Big Four banks. Based on this study, regulatory and practice based guidelines are proposed, which may be used to improve the efficiency of the compliance and operational risk functions in banks.

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 in oversight gaps or unintentional duplication. This paper describes a study on the overlap between these two functions in the second line of risk and control defence. A number of documents were analysed including relevant Basel Committee documents; South African banking legislation and regulations; integrated annual results, risk and capital reports of the four largest South African (the Big Four) banks; as well as internal operational risk and compliance documents of one of the Big Four banks. Based on this study, regulatory and practice based guidelines are proposed, which may be used to improve the efficiency of the compliance and operational risk functions in banks.

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自2008年雷曼兄弟事件引發全球金融海嘯後，各國金融監管機關為防止銀行再度因內部控制不當導致整體金融體系系統性崩潰，紛紛透過立法修正並加強監理，要求銀行強化法令遵循制度。我國金融監督管理委員會亦於今(2014)年針對「金融控股公司及銀行業內部控制及稽核制度實施辦法」加以修正，希望藉以提高金融機構對法令遵循主管職務之重視，強化法令遵循主管之專業訓練及其角色功能。 觀諸美國、新加坡、香港等地的法令遵循制度規範，均要求董事會應為法令遵循制度負監督義務，並責令銀行應設置法令遵循專責單位，以確保法令遵循單位之獨立性，法令遵循單位應透過法令遵循風險評估與監控計畫，將內部所偵測出的法令遵循缺失及時向董事會呈報，確保銀行內部自律機制之有效性。 為建立能及時揭弊除錯的通報制度，有學者建議應設計誘因以提高法令遵循之成效。惟我國目前尚未針對「吹哨者」建立保障機制，企業內部人往往囿於避免遭到企業報復、影響生計、甚至名譽受損害、面臨民刑事責任追究，而懼怕舉報。建議我國可參酌現行美國、英國、日本之吹哨者保障機制，加以立法保護，鼓勵內部人通報，以健全我國銀行業之法令遵循制度。 / In order to prevent another systematic global financial tsunami such like the enterprise internal control failures happened in 2008 triggered by Lehman Brothers, most of the financial regulatory authorities in the world have been strengthened supervision through legislation requiring banks to enhance regulatory compliance function. Taiwan's Financial Supervisory Commission also has amended the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries" recently to highlight the importance of the compliance function and require banks to strengthen the professionalism and independency of the compliance officers. After studying the regulatory requirements of the United States, Singapore and Hong Kong, this Article concludes that the Board of Directors of a bank shall be obligated for the oversight liability of the compliance governance system. Banks shall set up an independent responsible functional unit to identify, assess and monitor the compliance risk, and escalate the detected compliance breach or issue to the Board of Directors in a timely manner to ensure the effectiveness of the internal self-regulatory mechanism of the bank. To establish a timely internal alert system to detect and correct the compliance breach or issue, some scholars have suggested to provide incentives. Taiwan has yet legislated a single law for "whistleblower" protection mechanism. Most of the employees are not willing to report the findings because they tend to avoid being confined to retaliation, job losing, reputation damage or even criminal liability. This Article compares the relevant whistleblower protection legislation in the United States, the United Kingdom and Japan, and provide suggestion for legislation to protect and encourage insiders to escalate for any compliance breach or issue they found in order to improve the internal reporting system and therefore to enhance the banking compliance system.

This study deals with the use of the generalized finite difference method (GFDM) in perfectly matched layer (PML) analysis of the problems in wave mechanics, in particular, in elastodynamics. It is known that PML plays the role of an absorbing layer, for an unbounded domain, eliminating reflections of waves for all directions of incidence and frequencies. The study is initiated for purpose of detecting any possible advantages of using GFDM in PML analysis: GFDM is a meshless method suitable for any geometry of the domain, handling the boundary conditions properly and having an easy implementation for PML analysis. In the study, first, a bounded 2D fictitious plane strain problem is solved by GFDM to determine its appropriate parameters (weighting function, radius of influence, etc.). Then, a 1D semi-infinite rod on elastic foundation is considered to estimate PML parameters for GFDM. Finally, the proposed procedure, that is, the use of GFDM in PML analysis, is assessed by considering the compliance functions (in frequency domain) of surface and embedded rigid strip foundations. The surface foundation is assumed to be supported by three types of soil medium: rigid strip foundation on half space (HS), on soil layer overlying rigid bedrock, and on soil layer overlying HS. For the embedded rigid strip foundation, the supporting soil medium is taken as HS. In addition of frequency space analyses stated above, the direct time domain analysis is also performed for the reaction forces of rigid strip foundation over HS. The results of GFDM for both frequency and time spaces are compared with those of finite element method (FEM) with PML and boundary element method (BEM), when possible, also with those of other studies. The excellent matches observed in the results show the reliability of the proposed procedure in PML analysis (that is, of using GFDM in PML analysis).