Enterprise Compliance Risk Management

Chapter 5Who Are the Players in the Compliance Universe?

“Let me issue and control a nation's money, and I care not who writes the laws.”

—Amschel Mayer Rothschild (founder of the Rothschild dynasty), 1790

While the above quote, understood narrowly, captures the thinking of a small minority (often the unscrupulous) even today, in general it is not true anymore. Both the moneymakers and the law writers are important stakeholders of the financial system, along with a set of other important players. In this chapter we explore the various stakeholders of the compliance universe and by extension the financial services world.

The Universe of the Financial System—A Bird's-Eye View

In order to understand and appreciate the various stakeholders of the compliance universe and their perspective, it is important to understand the landscape of the financial system. Compliance and compliance risk management in the financial services are directly affected and influenced by the way the financial system functions, its components, and its players. The conversation on the financial system is to understand it in brief for a better appreciation of the compliance nuances and challenges. The attempt, therefore, is context setting of the who of compliance and not to write a treatise on financial system itself.

Financial System

At a very fundamental level the financial system is expected to channel the funds between savers/investors and users/borrowers, thus spurring money multiplication, increase ...