Compliance risk and the compliance function could enhance corporate governance not only in banks but in other kind of organizations as well

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This paper sets forth that compliance risk and the compliance function are powerful devices to enhance corporate governance. Firstly, it reviews the contribution made to the subject by the Bank for International Settlements (BIS). Next it argues that compliance risk matters not only in financial but in any other organization. Afterwards, it deals with how the compliance function can be shaped so as to grant independence and accountability to such managerial endeavors. Later, it shows some shortcomings in the BIS’ choice of governance principles. Lastly, it brings forth a set of governance principles related to compliance risk and the compliance function on behalf of financial as well as non-financial organizations