Why developing Risk & Compliance(R&C) Management Governance?
Compliance and Risk Management is often misunderstood and sometimes misapplied, but is vital to any organisation.
- It is central, if applied properly, to any organisation’s viability, direction, effectiveness- and is very important for managing an organisation’s growth and scalability.
- Every organisation should strive to build a compliant organisation not only for traditional reasons like avoiding any criminal prosecutions by regulators resulting in defamation of the company, but also for attracting & retaining clients.
Having an independent Risk & Compliance Management function is critical from many aspects, particularly when dealing with industry sectors like banking, insurance, telecom, where the regulatory implications/penalties in the event of any errors are significant. Also consumer activation is growing and consumer protection in countries like US/International markets is enforced far more vigorously than in some of the developing countries - but is changing fast – and so a stronger compliance and risk mitigation framework is important for an organisation's growth. Over time, the investment pays back, by lower operating losses, penalties and possibility of obtaining higher pricing in the market.
Having a strong R&C process will also make it easier for an organisation to get certifications from external auditors.
Easier said than done !
SO WHAT NEEDS TO BE TYPICALLY DONE?
-One key step will be for TBSS Risk and compliance unit to develop and generate a comprehensive risk mitigation and compliance checklist at an organisation as for each operating unit/division within the organisation, for all units to check themselves on the same.