Management and Compliance
Business Risk Management
Compliance risk management is the process of identifying, assessing and mitigating potential losses that may arise from an organization’s noncompliance with laws, regulations, standards, and both internal and external policies and procedures. Management practices are intended to help organizations maintain compliance with various regulations and laws.
Organizations may have compliance risk management policies and procedures, which are the framework and mechanisms they implement to control compliance risk.
Compliance risk management is a continuous process that involves tracking changes in the regulatory environment to ensure an organization’s compliance is up to date.
Compliance policies, procedures and training materials must be revisited on a regular basis in light of new policies, directives and regulations.
Organizations need to be aware of their compliance risk on a number of levels, not just from the perspective of the chief compliance officer (CCO).
While the CCO and other compliance staff are responsible for reviewing all aspects of the organization’s compliance risk — including its legal, regulatory, financial and technical risks — the compliance risk extends to all levels of the organization, including information technology (IT). This is why the organization’s IT department must be involved in compliance risk management.
Compliance risk management forms a portion of the collective governance, risk and compliance (GRC) discipline.
GRC is a set of management practices and technologies designed to ensure that an organization is operating in a manner consistent with its values, mission and risk tolerance. GRC policies are mainly seen in the financial industry, but other industries, such as healthcare, are also required by law to adopt risk management and compliance practices.
GRC is designed to help organizations identify and evaluate risks to their business and reputation. The three fields are similar to incident management, operational risk assessment and internal auditing.
Management and Compliance
Meet consumer demands
Nielsen studies show that 66% of consumers would spend more for a product if it came from a sustainable brand, and 81% of global consumers feel strongly that companies should help improve the environment.
There is a changing trend among consumers toward supporting sustainability, and it is only getting stronger as the number of millennials and generation Z increases.
Though sustainability is also about social and economic aspects, environmental concerns lead the thinking.