Question and Answer on Business Law 2022

Running head: BUSINESS LAW ASSIGNMENT
QUESTION-ANSWER ON BUSINESS LAW
Name of the Student
Name of the University
Authors Note

BUSINESS LAW ASSIGNMENT1
Answer- 1
Nowadays the practice of compliance function is observed in several organizations but
among them, bank or financial institutions is the only sectors which try to follow all the
guidelines provided by it. In financial sectors, the fundamental aim of the compliant function is
to support a banking organization in the administration of its compliance risk, which can be
described as the risk of legal or administrative fines, monetary loss or loss of reputation a
banking organization may undergo as a consequence of its failure to adhere to all relevant laws,
guidelines, codes of conduct and good practice norm (Griffith, 2015). Compliance risks are often
called as credit risks because the repute of a bank is closely linked to its compliance with
principles of honesty and fairness standards. Banking managers must be confident that clear
enforcement policies and procedures have been followed and that when violations of regulations,
rules, and standards are found, management takes necessary corrective action (Naheem, 2016).
I am a member staff of a Banking organization situated in Australia. Recently due to the
effective growth of this organization, several investment schemes have been offered to the
consumers with a good return and interest rates.
Short paper for circulation at the meeting
i) The role, accountabilities, and actions of the compliance function
A compliance team, including advisors, managers, communicators, educators, and
facilitators, has undertaken numerous functions within an organization. In general, a compliance
team is responsible for five fields, for example, identification, prevention, monitoring, and
acknowledgment, advisory. It describes and offers guidelines on how an organization is to avoid
or handle threats (Ramakrishna, 2015). It implements actions to minimize the risk of the

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organization. Compliance primarily tracks and advises about control performance incorporates
risk management. The compliance role approves and tracks compliance by gathering, sharing
and regulating information, by enforcing effective sanctions. Several factors are used in
assessing the risk involved in an organization which includes design, scope, volume, difficulty,
and size of the organization.
It has been guaranteed by the compliance function that the laws, rules, policies and moral
principles are followed by the organization and its members and staff. The enforcement role aims
to meet key regulatory goals in the field of investor security and the preservation of fair,
competitive and open markets. This also leads to the elimination of financial risk and violence.
Both priorities are aimed at developing customer trust in the financial sector. The business rules
have been monitored by regulating advertisements, removing clash of interests, communicating
with consumer and removing errors and defects (Prorokowski, 2015).
ii) Roles of directors, senior managers, employees and business unit to assure
compliance
In the case of every organization whether banking, retail marketing or real estate the
directors and senior managers play an active part in the development of the company. Section
180 to 183 of the Corporations Act, 2001 (Cth) enumerates the duties of the directors within an
organization. Apart from that, there are some additional duties which are mentioned in section
588G, 344, 188, 191 and 674. The senior managers and directors perform a variety of duties and
obligations in an organization (Varzaly, 2015). Those duties and responsibilities are:
 Directors must act with proper care and diligence [u/s 180];
 They must act in good faith [u/s 181];

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 They must not use their position inappropriately [u/s 182]; and
 They must not use the organizational information inappropriately [u/s 183].
For example, the senior managers and directors must share that information which is
advantageous for the business.
Besides senior managers and directors of the organization, it also the responsibility of all
the employees to assure compliance within the association. An employee shall be solely
responsible for enforcement or risk control, following his particular job title and accountabilities.
A diligent staff member must make sure that he or she follows the policies and procedures,
conducts the essential training and obeys the codes of behavior and morals (Hedges et al., 2016).
However, an important role has also been played by the business unit in guaranteeing
adherence, as the business unit’s compliance department shall implement all of the compliance
system purposes delegated to it by the Compliance Officer and the CEO of the business units.
iii) The overall benefit of the compliance function in the organization
The regulatory rules of business on an advertisement, communication between
consumers, clashes of interest, knowledge, and adequacy among the customers, consumer
relations, customs properties, and currency as well as violation of rule and errors apply also to
the banking sectors. The Enforcement Team guarantees a corporation complies with applicable
regulations and internal governance. Enforcement authorities work against key regulatory targets
to protect depositors and ensure fairness, efficiency, and transparency in banking industries.
They also seek to reduce the instability of the system and financial crime. The goal is to promote
consumer trust in the banking sector (Prorokowski, 2015). For instance, due to the development
of technology various tools have been used by the banking sectors to minimize the possibility of