It can be concluded from the overall research that the main objective of the research is to assess the compliance and risk management in foreign banks. It is found that compliance and risk management mitigate the risks in the business and maintain good relations with its customers by analyzing their information regarding the buying behavior. Moreover, it is also showed from the sources like disclose material information that related to the operations, which protect the interest of the stakeholders.
Besides this, generic strategy framework is helpful for the management to gain a competitive advantage over the other competitors in the market. Now a day’s in today’s competitive economy compliance and risk management is essential for the banks and other organizations to reduce the fraudulent activities. Along with this, it is concluded that banks adopted Bank Secrecy Act and Anti-Money Laundering Act according to changing needs of the market. It increases the productivity and operational performance of the organization and reduces the risks and effectively managed the resources. It finds that there are four major risks in the organization i.e. market risk, financial risk, operational risk and compliance risk. Compliance risk is considered to be the more risky factor in the bank as compared to these three risks and it is closely related to these three risks.
In addition, it is identified that compliance risk is in the control of the banks and many banks avoid these risks to continue its operations. In this risk, the bank should not violate the policies and law. The other three risks are influenced by the internal and external factors are not purely under the control of the banks. For that reason, it concludes that compliance risk is more complex and difficult to control. Furthermore, the outcomes of these risks are same i.e. it brings the monetary or reputational loss to the banks. Compliance risks majorly exist in the operational process of the banks. The reasons behind these risks are a lack of unawareness about these types of risks. It also influences the decision making in all levels of management.
These risks are occurred due to inefficient process at all levels of management. Ignorance of these risks at operational levels will cause harms and losses to the management. It finds that the information related to the finance, compliance and risk is an effective tool for the management in the organizations that helps manager to minimize the gap between the different processes and take effective decisions. Such real time processes identify the risks and combat the risks related to the losses. Effective compliance programs enable to provide the real time information related to the liquidity and capital in the organization. The effective compliance culture assists bank to divide the responsibility on every employees to act as custodian for the bank regarding their reputation.