COMPGF03 - Compliance, Risk and Regulation

This database contains 2016-17 versions of the syllabuses. For current versions please see here.

PrerequisitesIt is recommended that students take COMPGS06 Financial Institutions and Markets (or it's equivalent) in term one. Successful completion of Introduction to Securities and Investment administered by the Chartered Institute for Securities and Investment is also a suitable prerequisite. If unsure, contact module tutor for further guidance.
Taught ByDonald Lawrence and Industrial SMEs
AimsThe module will familiarize participants with compliance department processes in risk governance per requirements of regulators, shareholders, management and clients.  Develop understanding of the major role of implementing the dynamic regulatory requirements in financial centers and the interdependence on risk IT, models and computational finance.
Learning OutcomesFamiliarization with different lines of risk governance; BoD, executive management, business unit, independent functions, and internal audit.  Understanding of interactions between business heads, compliance, risk and regulators. How interactions are evolving in rules based environment, and what IT/computational solutions are explored/employed.


Foundations of the compliance environment
The module will present the foundations of the compliance environment in a financial institution/financial department of a firm. Examine accounting and legal governance best practice, and what key functional roles are carried out.


Market, credit, operational and liquidity risk, stress testing 
Examine the definitions, the key organisational guidelines, reporting structure, industry best practice, the int’l regulatory environments. Explore FT-Tax, Volker rule and OTC move to exchange model, etc. How will FI's business model morph, minimizing expense whilst delivering sustainable risk adjusted RoE in the environment of new capital, margin and reporting requirements and onslaught of disruptive technology and falling barriers to entry.  


Compare major OECD regulatory organisations, what are their domestic agendas and overlapping coverage. 

Method of Instruction:

Lecture presentations, associated case studies, labs, tutorials & UCL Finds debates & speakers. 

The course has the following assessment components:


  • Written Examination (2.5 hours, 70%)
  • Academic/Industrial Coursework (30%)

 To pass this course, students must:


  • Obtain an overall pass mark of 50% for all sections combined.




Geithner, 'Stress Test', Crown 2014 

Crouhy/ Galai/ Mark, ‘The Essentials of Risk Management’, McGrawHill 2006

Lowenstein, 'When genius failed', Random Hse 2000