Compliance in Risk Management

Risk management and compliance are interrelated disciplines and should be implemented accordingly. RIMS (The Risk Management Society) defines enterprise risk management as “a strategic business discipline that supports the achievement of an organization’s objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated risk portfolio.” In order for business propositions to succeed, strategic planning must be interconnected with methodical risk thinking.

Joseph E. Murphy writes in his case for compliance in small business, A Compliance & Ethics Program on a Dollar a Day, that compliance is really about “a management commitment to do the right thing, and effective management steps to make that happen.” He goes on to discuss the importance of making sure that all those who work for the company know what to do in all situations. He states that employees and stakeholders need to believe that the company is serious about acting legally and ethically.

G2 Meets Your Compliance Risk Management Needs

GRC is an acronym that denotes governance, risk, and compliance. The connection between risk management and compliance.

Governance, risk and compliance (GRC) is a concept that has been around for a while, but many companies have only put governance, risk and compliance management plans into place over the last several years.  GRC includes departments like internal audit, compliance, risk, legal, finance, IT, HR as well as the lines of business, executive suite and the board itself.

Compliance risk management is part of the collective governance, risk management and compliance (GRC) discipline. The three fields frequently overlap in the areas of incident management, internal auditing, operational risk assessment, and compliance with regulations.

Compliance risk is exposure to legal penalties, financial forfeiture and material loss an organization faces when it fails to act in accordance with industry laws and regulations, internal policies or prescribed best practices.

Compliance risk is also sometimes known as integrity risk. Many compliance regulations are enacted to ensure that organizations operate fairly and ethically.

G2 works with our clients to create cost effective risk management plans, saving time and money.