Which function is primarily focused on systems and controls functions as per SYSC?

The function that is primarily focused on systems and controls functions as outlined in SYSC (Senior Management Arrangements, Systems and Controls) is risk assessment. SYSC highlights the importance of effective systems and controls to ensure that risks are adequately identified, assessed, monitored, and managed within a firm.

Risk assessment involves analyzing potential risks that could impact the organization’s objectives, including operational, financial, and compliance risks. This function ensures that there are adequate controls in place and that the firm is not exposed to excessive risk, aligning with regulatory expectations for firms to maintain a strong governance framework.

While compliance officers and other functions such as human resources management or financial forecasting play important roles within the organization, their primary focus is not solely on the systems and controls framework as delineated in SYSC. Compliance officers primarily ensure adherence to laws and regulations instead of focusing specifically on risk controls. Hence, the emphasis on systematically assessing risk underscores its critical role as defined in the guidance provided by SYSC.