Governance Risk and Compliance
For companies that are new, this can be rather difficult to sift through. However, many newer companies have been able to successfully reduce the chances that they will lose a contract to a competitor by creating policies that are risk-specific. In turn, a company’s ability to remain competitive wanes with time -and without a solid risk management plan, a company’s ability to stay afloat into the day’s marketplace becomes tenuous at best.
Thus, for a company that is just starting out or struggling to remain profitable, it is important that managers are able to identify policy areas that are risk specific and take steps to address these issues before they adversely affect company growth or profits.
Therefore, in reviewing and implementing their risk policy, managers need a checklist in order to ensure that they are not missing any important aspects of a company’s operations.
The first step in the development of a policy is to identify the key risks to a company’s operations and implementation of this policy must begin immediately.
However, it is also important for a manager to realize that no single policy can solve every problem that a company faces. Therefore, it is also necessary for a company to develop policies and procedures that are flexible enough to accommodate different types of operations – whether they be online or traditional.
Managers also need to have a means of effectively communicating with all individuals within a company to make sure that everyone understands the ins and outs of their company’s risk policy and is aware of how their actions affect the company’s bottom line.
A company’s compliance officer must also be very involved in the day-to-day operations of the organization. This means that the compliance officer must have in place a strong compliance support system, which will include internal and external resources, as well as specialized incident management tools, in order to successfully resolve risks.
The compliance officer will also need to have strong communication skills and work very closely with the executive team and the various managers within the organization.
Ensuring that the company adheres to all of the applicable laws and regulations is crucial to the company’s ability to retain and attract top talent and employees, while at the same time reducing expenses and avoiding exposure to large fines and penalties.
The Governance Risk and Compliance tool will be responsible for implementing policies and procedures that effectively manage the various risks that the company faces while protecting the company from potential liability and litigation.
In order to successfully implement a Risk and Compliance Policy, the compliance officer will need to thoroughly understand the company’s risk profile, as well as meet with senior management regularly in order to monitor progress, review newly developed policies and procedures, or initiate changes to existing policies and procedures.
Having an understanding of each risk category and the associated policy templates will help to ensure that an effective Risk and CompliancePolicy are implemented. Having an effective policy in place will also help to ensure that employees and other parties involved in business activities are held accountable for their actions, regardless of whether they are based in accordance with the law or not.
