Glossary of Key Terms

• Compliance: Adherence to laws, regulations, rules, policies, and ethical standards.
• Compliance Program: A structured system designed to prevent, detect, and address compliance violations.
• Risk Assessment: The process of identifying, analyzing, and prioritizing potential compliance risks.
• Policy: A formal statement of principles, rules, and guidelines that governs organizational behavior.
• Training: Educational programs designed to inform employees about relevant laws, regulations, and company policies.
• Monitoring: The ongoing process of observing and evaluating compliance with policies and regulations.
• Reporting: The act of communicating suspected or actual compliance violations to appropriate authorities.
• Internal Reporting: The act of communicating suspected violations to internal individuals.
• External Reporting: The act of communicating suspected violations to external individuals.
• Due Diligence: Reasonable steps taken by a person or organization to avoid committing an offence.
• Whistleblower: An individual who reports illegal or unethical conduct within an organization.

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• Defense Industry Initiative on Business Ethics and Conduct (DII): A collaborative effort among defense contractors in the 1980s to establish ethical principles and guidelines, often cited as a foundational example of compliance program development.
• Self-Governance: An organization's ability to manage its own behavior and ensure it is meeting ethical and legal standards without sole reliance on external oversight.
• Internal Controls: Processes implemented by an organization to provide reasonable assurance regarding the achievement of its objectives related to operations, reporting, and compliance.
• Defense Procurement Scandals: A series of unethical activities related to the purchasing and sourcing of resources by the defense industry, leading to loss of public trust.

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Glossary of Key Terms

• Compliance: Adhering to legal rules, regulations, standards, and ethical principles.
• Legal Requirements: Mandatory rules, regulations, and laws that organizations must follow.
• Ethical Principles: Moral guidelines that go beyond legal requirements, emphasizing what is right and just.
• Integrity: Acting honestly and ethically in all business dealings and interactions.
• Transparency: Being open and accountable in decision-making processes, ensuring clarity and accessibility.
• Fairness: Treating all stakeholders equitably, without favoritism or bias.
• Responsibility: Taking ownership of one’s actions and their consequences.
• Financial Regulations: Legal rules governing accounting, reporting, and anti-money laundering practices.
• Environmental Regulations: Laws designed to protect the environment from pollution and other harms.
• Data Privacy Regulations: Rules intended to safeguard the personal information of individuals.
• Labor Laws: Laws ensuring fair employment practices and worker's rights.
• Anti-Corruption Laws: Rules prohibiting bribery and other forms of corruption.
• Stakeholders: Individuals, groups, or organizations that are affected by, or can affect, the activities of a business or project.

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Glossary of Key Terms

• Compliance: The act or process of adhering to rules, laws, regulations, standards, or ethical guidelines.
• Due Diligence: The process of taking reasonable steps to ensure the accuracy, completeness, and legitimacy of information and to identify potential risks.
• Globalization: The process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture.
• Jurisdiction: The official power to make legal decisions and judgments; the geographical area within which such authority may be exercised.
• Multinational Corporation: A corporation that has its facilities and other assets in at least one country other than its home country.
• Regulations: Rules or directives made and maintained by an authority that are intended to control behavior.
• Sarbanes-Oxley Act (SOX): A U.S. federal law passed in 2002 in response to major accounting scandals that set new standards for U.S. public company boards, management, and public accounting firms.
• Non-Compliance: Failure or refusal to follow a rule, law, regulation, or code of conduct.
• Ethical Conduct: Behavior that aligns with principles of right and wrong; often goes beyond mere compliance.
• Corporate Scandal: A significant event involving unethical, illegal, or improper behavior by an organization, its executives, or its employees that negatively affects stakeholders and public trust.

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Glossary of Key Terms

• Accountability: The state of being responsible and answerable for one's actions and decisions.
• Adhere (to): To stick to, follow, or comply with a rule, agreement, or plan.
• Audit: A systematic review or assessment of an organization's processes or records to verify compliance, effectiveness, or accuracy.
• Breach: To break or violate a law, rule, obligation, or duty.
• Comply (with): To act in accordance with rules, regulations, or laws; to conform or obey.
• Control: A means of regulating, managing, or restraining processes, activities, or behaviors to achieve a desired outcome.
• Monitor: To observe, check, and track something regularly, especially for the purpose of supervising performance or compliance.
• Oversight: The supervision, control, and management of activities or operations, often with the aim of ensuring compliance or effectiveness.
• Policy: A set of guidelines, principles, or rules adopted by an organization as a basis for action.
• Procedure: A specific method or step-by-step process for carrying out a task or activity, often implementing a policy.
• Regulation: A rule or directive issued by an authority or government that dictates a specific standard of behavior or operation.
• Risk: The chance or possibility of something bad, harmful, or undesirable happening, such as a breach of compliance.
• Training: Instruction, teaching, or education provided to increase skills, knowledge, or understanding, especially of compliance-related rules or procedures.
• Transparent: Easy to perceive, understand, and see through; open, clear, and free from deceit or obscurity.

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Glossary of Key Terms

• Compliance: The act of adhering to a set of rules, laws, standards, and ethical guidelines. In finance, it refers to the framework institutions and individuals use to ensure that operations and behaviors conform to regulations, internal policies, and ethical expectations.
• Ethical Behavior: Actions and decisions that are based on principles of honesty, integrity, and fairness. In finance, it involves avoiding conflicts of interest, treating clients fairly, and acting with due diligence.
• Fiduciary Responsibility: A legal and ethical obligation of a person or institution to act in the best interests of another party, often involving a position of trust and confidence.
• Market Integrity: The overall fairness, trustworthiness, and transparency of financial markets. Compliance plays a crucial role in upholding market integrity by preventing fraud and unethical activities.
• Anti-Money Laundering (AML) Laws: Regulations designed to prevent and detect the use of the financial system to conceal or disguise illegally obtained funds.
• Securities Laws: A set of laws that regulate the issuance and trading of securities, protecting investors from fraudulent practices and ensuring fair markets.
• Systemic Risk: The risk that the failure of one institution can trigger a wider collapse of the financial system. Compliance is essential in preventing such risks.
• Reputational Damage: Harm to a company's public image and standing, which can result in the loss of customers and investors.
• Due Diligence: The process of conducting thorough research and analysis before entering into an agreement or transaction, ensuring all relevant factors are considered.
• Conflicts of Interest: Situations in which a person or organization has competing interests, potentially leading to biased decisions and unethical behavior.

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Glossary of Key Terms

• Compliance: The act of adhering to rules, laws, and regulations established by governing bodies, both internal and external.
• Regulations: Rules or directives issued and enforced by an authority, designed to govern behavior or activities in a specific area.
• Jurisdictions: The official power to make legal decisions and judgements over specific territories or areas.
• Non-Compliance: Failure or refusal to obey rules, laws, or regulations.
• Reputational Damage: Harm to an organization's public image or standing as a result of negative actions or associations.
• Legal Repercussions: The adverse legal consequences that may arise from failing to comply with laws and regulations, including fines, lawsuits, and penalties.
• Financial Losses: Monetary losses that can occur because of non-compliance, including fines, penalties, legal fees, and lost business opportunities.
• Dynamic Regulatory Landscapes: Refers to the constantly changing and evolving nature of laws and regulations.
• Compliance Programs: Systems and processes an organization puts into place to ensure that it follows all relevant laws, regulations, and standards.
• Agile: The ability to quickly and easily adapt to changes in the regulatory environment.

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Glossary of Key Terms

• Preposition: A word that shows the relationship between a noun or pronoun and other words in a sentence (e.g., by, for, with, in, at).
• Agent: The person or thing that performs an action. In a sentence, the agent is the performer.
• Purpose: The reason for which something is done or created. In a sentence, the purpose explains why an action occurred or why something was created.
• Passive Voice: A sentence construction in which the subject receives the action, rather than performing it, often indicated by using the verb "to be" with a past participle and often using "by."
• Active Voice: A sentence construction in which the subject of the sentence performs the action of the verb.

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Glossary of Key Terms

• Seed Funding: Early-stage funding provided to a new business to help it get started.
• Debt Financing: Borrowing money that must be repaid over time with interest.
• Incubator: A company or organization that helps early-stage startups grow by providing resources, mentorship, and networking opportunities.
• Accelerator: A program that supports startups, often through intensive workshops, mentorship, and access to funding, to accelerate their growth rapidly within a specific timeframe.
• Burn Rate: The rate at which a company is spending its capital.
• Valuation: The estimated worth of a company.
• Due Diligence: An investigation or audit of a potential investment to verify its accuracy and assess its risk.
• Term Sheet: A non-binding agreement outlining the terms and conditions of a potential investment.
• Dilution: The reduction in ownership percentage of existing shareholders when new shares are issued.

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Glossary of Key Terms

Asset: Something of value that a person or company owns.

Capital: Money used to start or grow a business.

Commodity: Raw materials, like oil or gold, that are traded.

Dividend: A share of profits paid to shareholders.

Equity: Ownership in a company, represented by stock.

Exchange: A marketplace where securities are bought and sold.

Index: A benchmark that tracks the performance of a group of stocks.

Liquidity: How easily an asset can be converted to cash.

Market Capitalization: The total value of a company's outstanding shares.

Portfolio: A collection of investments held by an individual or institution.

Prospectus: A document with details about a security offering.

Return: The profit or loss on an investment.

Security: A tradable financial asset, like a stock or bond.

Shareholder: Someone who owns stock in a company.

Stock Exchange: A marketplace where stocks are bought and sold.

Ticker Symbol: A short code that represents a company's stock.

Volatility: How much the price of a security fluctuates.

Yield: The income return on an investment.

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