The proliferation of new business processes and the changing government rules and regulations around the globe are posing challenges for small and big companies alike. However, many companies still rely on an old-school approach when it comes to risk and compliance management. Business risks today are highly volatile and rapidly changing. Consequently, the compliance and risk management approaches of every company should continuously evolve to survive these dynamic changes. Experts at Infiniti Research believe that shifting focus on the alignment of functional processes and creating a symbiotic relationship between them can play a major role in enhancing the risk and compliance management of companies. Here are some proven strategies that can be adopted to improve the existing risk and compliance of companies.
How to improve risk and compliance management
Use a unique compliance and risk strategy
By adopting a unique risk and compliance management strategy, companies may anticipate future industry trends across business, products, processes, services, and geographies. This will help the organization gain a competitive advantage through well-planned compliance management programs.
Right combination of tools and technology
The risk and compliance process of companies can be made more efficient by identifying and adopting the right combination of technology and best practices. With the amount of advanced tools and technology today, this would be a rather easy task. Using a tool that can extract data from the system and then provide comprehensive insights on deviations from the desired risk and compliance policy will prove to be useful.
Collaboration and functional integration
Risk and compliance should be integrated into an enterprise-wide risk management process. This helps ensure that any issues faced by the organization relating to risk and compliance are not considered in isolation. It must include all activities related to risk and compliance management, and it should provide a framework that can be leveraged to assess an organization’s exposure to risk. This gives organizations a better opportunity to make timely and well-informed decisions.
Enhance corporate governance
Compliance and risk management is closely linked to corporate governance. Effective corporate governance sets the tone for understanding risks and risk management capabilities and aligns the risk appetite with the organization’s opportunity-seeking behavior. Furthermore, elevating risk management to a strategic level strengthens board oversight, clarifies risk management roles and responsibilities, sets risk management authorities and boundaries, and ensure effective communication of risk responses in support of key business objectives.
Not just the employees, even managers in some of the top companies around the globe still are completely unprepared to address risk and compliance related issues. Considering the fact that compliance is one of the greatest risks your organization faces, appropriate training should be at the top of any company’s risk management plan. Moreover, having well-defined processes as well as documented policies, procedure and guidelines help ensure better risk and compliance management throughout an organization.