Risk Compliance Management System: Why should you have one?

Compliance Risk

In this new era of complexities and uncertainties in the world, risk management is now an essential part of managing compliance to regulatory laws and policies. With the increasing regulatory pressures, highly publicised compliance breaches and the recent trend leaning towards greater transparency, how would you ensure that your organisation is compliant to all requirements?

The quick emergence of technology that almost everyone has a smart phone and accessible to the WWW anytime, anywhere, any publicised compliance issues may have immediate consequences on the organisation’s brand reputation given the quick spread of social media and other advances in communication technology, possibly even leading to monetary and resource depleting consequences. Hence, ensuring compliance through setting up of compliance and risk committees has been on an upward trend with many organisations today.

While some may argue that the growing levels of regulatory enforcement may be “too much”, other organisations can see that being compliant to the standards can help them gain a competitive edge and how effective compliance management can work to bring their business to the next level. This focus on being compliant to the standards will work to their advantage with regulatory bodies continuing to roll-out more complex standards as well as avoiding the penalties that come with non-compliance such as monetary fines, or even risks to the business products and services.

An effective Compliance Risk Management System contributes greatly to a complete Compliance Management System and process. An effective Compliance Risk Management System, when put in place, will help to raise the organisation’s compliance level and reduce any associated risks. With the Compliance Management System, consisting of your organisation’s policies, standards, pragmatic approaches and documentation, there is an accountability to ensure compliance. Non-compliance can lead to high costs to the organisation, be it reputational, monetary, time-wise and even on a legal basis.

What then, is Enterprise Risk Management (ISO 31000)?

And how should we integrate risk management into the Compliance process effectively?

To learn more on how Enterprise Risk Management, contact BCP Asia today at (60) 3 2831 9309 or enquiry@bcpasia.com