Suppose that a company in the financial sector (which is a regulated sector) asks you for a clear identification of the risks to which it may be exposed, since the company wishes to equate the control of legal risks with the monitoring of regulatory compliance. that affects its main activity. Since their level of awareness on this matter is logical, since non-compliance with such regulations can result in significant administrative sanctions or even the intervention or paralysis of their activity by the corresponding regulatory body. We must be clear that Legal Risk is generated by: The behavior of financial entities themselves The Nature of Financial Markets Problematic Laws/Regulations The Interaction of Law and Finance.

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Identifying and managing legal risks and regulatory compliance are crucial for companies in the financial sector given the potential for significant a... View the full answer