Managing compliance sounds like a daunting task. That’s because it can be, especially with the many things you must consider and the severe consequences non-compliance has. In fact, Nasdaq published a survey in late 2018, with 55% of compliance officers stating their top concern as “fully understanding regulation and how it impacts the business.” That’s why compliance training is a must, and not just any training, but a carefully strategized one.
It’s also crucial to identify, mitigate, and review compliance risks your business may face on an ongoing basis. This article will share tips on how to manage compliance risk across all aspects and topics, from cybersecurity learning to workplace safety.
- Begin with a Risk Assessment
People can’t manage compliance risks if they don’t understand the risks in the first place. When you conduct a thorough and scientifically justified risk assessment that includes all the elements making up your compliance program, you can accomplish a lot!
Remember, there isn’t a one-size-fits-all solution. Compliance departments usually have limited resources and apply the same approach to the entire organization. However, this would lead to spreading resourced too thin, over-allocating to low-risk markets. That’s why you must assess the risks your business faces first to prioritize and address them properly.
- Consider the Third Parties
All businesses will have to deal with third parties but the number of third parties will vary depending you’re your busines type and size. Performing due diligence on all third parties is crucial, as most of the biggest compliance risks are associated with third party interaction.
That’s why your business must adopt a strong due diligence process to manage compliance risks effectively. If you deal with numerous third parties, your due diligence process should be streamlined, integrated, and, as much as possible, automated.
- Understand Updated Enforcement Policies
Compliance risks usually encompass various areas like export control, anti-corruption laws, and data protection. You must ensure you are knowledgeable of the requirements imposed by the applicable laws and regulations for your organization. Besides understanding the laws and policies, you must stay updated with the latest news released by enforcement agencies as well.
When you stay updated and know about what your organization should follow, it can prevent any issues from worsening as they arise. Make sure that you tweak your compliance program accordingly as new updated come along!
- Build a Culture of Compliance and Ethics
As you manage compliance risks, it may be easy to lose oneself when managing complex problems and tailoring compliance programs to the latest policies. Your employees may feel somewhat similar, seeing compliance more so as a box to tick from the list, getting it over with just to get back to work. Now, that’s another problem on its own!
Compliance should be a broader and organization-wide effort, so encourage a better culture of ethics and compliance from the top management to the rest of the organization.
Wrapping It Up
Keep all the tips above in mind as you strategize for effective compliance risk management.