Determining the governance, risk management & compliance maturity of credit institutions by applying the Basel & OCEG recommendations as a theoretical index

Abstract

Over the past few years, many credit institutions have continuously tried to improve and make their governance, risk management and compliance processes more integrated. This has been done with the scope to prevent any other potential future crisis. However, there are still some credit institutions that remain largely siloed in their processes. Therefore, the scope of the study is to determine the maturity of GRC processes for credit institutions operating in Malta by using theoretical indices proposed by OCEG and the Basel Committee.

The study seeks to determine those components or variables, which influence GRC processes and practices, the researcher will then move on to build the questionnaire based on such factors. The initial responses gathered will be compared to a similar GRC maturity survey carried out by the Open Compliance and Ethics Group (OCEG) in 2017. However, the following set of questions were based on propositions highlighted by the Basel Committee on Banking Supervision (BCBS), each of the possible responses that could have been selected by the respondent had a particular weighting, each symbolizing the level of integrated GRC practices.