This paper argues that compliance risk and the compliance function are powerful tools for enhancing corporate governance, not only in banks but in any other organization as well. First, it reviews the contribution made by the Bank for International Settlements (BIS), which pertains only to financial institutions. Next, it asserts that compliance risk is indeed important in any corporate governance environment. Afterward, it examines how the compliance function can be shaped to grant, on the one hand, its own independence and, on the other, clearly defined patterns of accountability. Subsequently, it points out some drawbacks in the BIS's choice of governance principles. Finally, it presents a set of governance principles applicable to both compliance risk and the compliance function in financial and non-financial organizations alike