Risk Assessment And a Compliance Risk Audit For All Securities Advisors

Whether you are an investment advisor, broker dealer, or hedge fund manager a compliance risk audit should be a top priority at your investment firm. A compliance risk audit will be able to help your investment firm with its compliance risk assessment in preparation for their annual SEC visit. Those firms who do not make a risk audit a part of their routine are risking a major backlash from regulatory auditors in the way of hefty fines, jail time and the possible loss of business. A compliance risk audit is the best decision your firm can make in regards to risk assessment and protecting your securities firm. Risk assessment and a risk audit is the first step in implementing an “alarm system” which can alert securities firms about any possible red flags regarding compliance issues. A compliance risk audit is to make sure that “alarm system” is shut off before the SEC arrives. With the regulatory climate on sizzle, a risk audit is the best decision your securities firm can make to avoid any problems with a reinvigorated and fired up SEC board.

An internal audit is only the first step in dealing with risk assessment and its impact on your securities firm. All securities firms dealing with a compliance risk audit will need to gather a stellar compliance management team who can create an audit checklist that fits your individual firm’s needs. A good compliance management team can oversee a compliance risk audit and be able to squelch any fires before the SEC arrives.


But where do I find a compliance management team who can handle my compliance risk audit?

An outside accounting and compliance firm can put together the perfect compliance management team to help your firm with its compliance risk audit. An outside accounting and compliance firm will listen to all of your investment firms needs and then be able to tailor a compliance audit which focuses on the issues that your firm needs to work on. Risk assessment is only valuable if it helps the individual securities firm locate and deal with the compliance issues they are facing. An outside accounting and compliance firm can help you pinpoint these compliance issues and save your firm from senseless fines and penalties.

So which accounting and compliance firm will best suit my firms needs when it comes to risk assessment and a compliance risk audit?

Before choosing an accounting and compliance firm to handle your compliance risk audit you should always do your due diligence. Due diligence will reveal that the only accounting and compliance firm you should hire for your risk audit is one that is already established and has a stable of high profile, Wall Street clients. The accounting and compliance firm should also have strong connections with the SEC and FINRA and keep an open line of communication between those agencies in order to stay on top of any new compliance changes regarding a compliance risk audit. Remember to do your due diligence when it comes to hiring the right firm to conduct your risk assessment and always choose a firm that is well established and has a bevy of high profile Wall Street clients.