Shinhan Investment & Securities noted on the 29th that it has significantly increased the number of compliance officers to establish internal control as part of its organizational culture and has strengthened its structural foundation by launching an audit information analysis team. The responsibility for internal control management will also be expanded from existing executives to the deputy department head level.
This measure was discussed by the crisis management and normalization task force established within the emergency management system after the liquidity provider (LP) loss incident regarding exchange-traded funds (ETFs) amounting to 130 billion won last year. Shinhan Investment & Securities explained that it reflects its commitment to implement internal control as action rather than declaration.
Compliance officers are responsible for continuously monitoring customer interactions, marketing, security, and overall work processes to proactively manage blind spots in internal control. They also operate independently from specific departments or personnel, acting like security guards, and possess both autonomy and responsibility to freely inspect and report when potential violations of internal control are detected.
These individuals are composed of veteran personnel who deeply understand the tasks in various fields such as asset management, corporations, operations, and digital, and they are dispatched to each business organization.
Shinhan Investment & Securities has not only stopped at the simple dispatch of compliance officers but has also established an audit information analysis team within the company to finalize daily monitoring reports for key middle and back office departments such as risk management and settlement. They quickly checked issues and transactions identified through the operational departments to detect and respond to risk factors early.
Additionally, the management obligations such as internal control, which were previously applicable only to executives under existing law, have been expanded to department heads, and an internal control management system and manual to support this have been in operation since February of this year.
The internal control manual systematically includes the major risk response procedures and routine inspection criteria for each department, and it is structured to enhance the effectiveness and accountability of work performance. Each department head must report the causes and improvement measures in case of inadequate internal control, and the compliance management department can demand corrective actions based on inspection results.
Lee Seon-hoon, CEO of Shinhan Investment & Securities, said, "Internal control is more important for prevention than for post-action measures," and added, "By clearly defining the responsibility for internal control not only for executives but also for deputy department heads, we will do our utmost to restore and strengthen the trust of customers and the market along with the implementation of multiple layers of internal control systems."