Compliance Risk Management - Important Details
What is Compliance Risk Management?
Compliance risk is defined as a risk that a business faces due to non-compliance with statutory or internal regulations and standards. To mitigate the adverse effects of non-compliance, companies undertake compliance risk management. Under this process, concerned professionals identify, assess, and perform steps to avoid potential losses the business might face due to the non-fulfillment of regulations, laws, and standards.
Compliance risk management policies are formulated by those organizations that are required to comply with specified guidelines and regulations. It is an ongoing process that requires tracking regulatory changes and ensuring that the company’s compliance standards are in sync with them.
The definition of what is compliance risk varies according to the nature of activities an organization engages in. But the risks of non-compliance for all businesses can be serious, including fines, penalties, losing customers, and several others.
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