Failed mandatory reporting obligation
Below are the details of the operational risks covered within this selected sub-risk category:
Delay in submitting mandatory reports to law enforcement agencies or regulators
Risk Description: -
Delay in submitting mandatory reports to law enforcement agencies or regulators may result in firm breaching its reporting obligations. Examples of such delay include: -
- Delayed submission of suspicious customer transactions to law enforcement agencies.
- Delayed submission of information about significant security breach of customer data to regulatory agencies.
Submitting reports with significant information gaps to law enforcement agencies or regulators
Risk Description: -
Submitting reports with significant information gaps to law enforcement agencies or regulators may result in firm breaching its reporting obligations. Examples of such gaps include: -
- Providing incomplete information about customers to regulators, after such information was requested by regulator to conduct a regulatory investigation.
- Providing incomplete information about significant security breach of customer data to regulatory agencies.
Submitting report with incorrect information to law enforcement agencies or regulators
Risk Description: -
Submitting reports with incorrect information to law enforcement agencies or regulators may result in firm breaching its reporting obligations. Examples of such gaps include: -
- Submitting financial accounts to stock exchange with incorrect information about one or more financial topics such as revenue, costs, assets, liabilities.
- Submitting incorrect information about customers to regulators, after such information was requested by regulator to conduct a regulatory investigation.
Submitting inconsistent or conflicting data to multiple law enforcement agencies or regulators
Risk Description: -
Submitting inconsistent or conflicting data to multiple law enforcement agencies or regulators may result in a firm breaching its reporting obligations. Examples of such data include: -
- Providing inconsistent information to local and foreign regulators about the sale of a product, after such information was requested separately by the local and foreign regulatory to conduct separate regulatory investigations.
- Providing a very optimistic view of assets and liabilities to a local regulator, while at the same time providing a very pessimistic view of assets and liabilities to a foreign regulator.