Risk management helps financial institutions identify, assess and respond to uncertainty. Compliance focuses on meeting applicable legal, regulatory and internal requirements.
Common categories of risk
Credit risk concerns borrowers not meeting obligations. Market risk relates to movements in prices and rates. Operational risk can arise from processes, systems, people or external events.
Where compliance fits
Compliance teams help interpret requirements, support policies, monitor controls and escalate issues. They often work alongside legal, audit and risk functions.
Keep learning from primary sources
For UK regulation, consult the FCA and the PRA. Requirements differ by firm and activity, so do not treat general explanations as compliance instructions.
This article is general information, not financial, legal or immigration advice. Verify current rules with official sources.