Internal Controls in Jordanian Banks and Compliance Risk

Abstract

The study aim to determine the tools and techniques of internal control that could be applied through its dynamic systems and by deploying a risk management approach that banks could establish when addressing compliance risk for monitoring and control purposes; also investigating whether or not Jordanian banks are applying integrated internal controls to deal with possible compliance risks. The researcher distributed the 15 questionnaires for banks in Jordan undertaken. Interviewer-administered questionnaire was conducted.The findings have revealed that Jordanian banks apply integrated internal controls through its dynamic and the enforcement of those controls into systems, people and processes in order to mitigate and deal with compliance risks that could be facing those banks. Moreover internal controls in banks to be successful in promoting sound and effective in order to deal with compliance risks, regulators and governments should demonstrate to banks in Jordan how significant internal controls are, so that they can be able to cope with the risks they are exposed to more efficiently. In addition this study will be of value to those interested in compliance management through integrated internal controls in the banking industry.

Keywords: Internal Controls, Risk management, Compliance, Jordanian banks.