A major component of running an organization is making sure it is in compliance with external and internal regulations and policies in order to protect it from the risks caused by non-compliance. We are listing down 3 steps to effective compliance risk management:
STEP 1: Set a framework to identify your obligations
The first step is building a framework that ensures your organization carefully identifies and understands its duties, obligations, and liabilities towards the government as well as employees, investors, or any third-party members.
STEP 2: Initiate a risk assessment
Once you know your organization’s compliance obligations, you must initiate a risk assessment to understand how the compliance obligations, could put your company at peril if not followed, sincerely. In other words, you’ll want to measure the dangers imposed on your company if you don’t follow a particular standard. As part of this process, you will be able to prioritize your compliance efforts and allocate resources accordingly.
STEP 3: Incorporate policies & procedures to stay compliant
For any company, it is of vital importance that you protect your compliance efforts by creating policies and procedures, including any necessary contracts, that ensure you are meeting your obligations in a proper and timely manner.
