For quantitative analysis, explicit values are assigned to the probability of a risk occurring, and impact is often measured in financial terms. The difference between issue management and risk management is that issue management applies resources to address and resolve current issues or problems, while risk management applies resources to mitigate future potential root causes and their consequences. Risk management also involves establishing an appropriate risk management infrastructure and culture, and applying logical and systematic risk management processes to all stages in the life cycle of any activity, function, or operation.
From crisis management planning to real-time crisis response and recovery, you need to be able to provide reputational risk and crisis management services to support your organization before, during, and after an adverse event, as well as execute and manage multi-faceted projects related to risk management, mitigation, and response. Compliance, control assurance, and user awareness risks can be assessed on an inherent and residual basis, both qualitatively and across multiple risk categories using monetary values.
General counsel/compliance officers, contract managers, and other legal professionals can implement legal risk management within their own domain. Rather than evaluating risk with an eye toward relaxed regulations and possibly being left behind, you should try to encourage the use of stress tests and other tools to ensure the organization is in a good risk position no matter how the regulatory landscape may change in the future. Strategic risk management is the process of identifying, quantifying, and mitigating any risk that affects or is inherent to your organization’s business strategy, strategic objectives, and strategy execution processes.
Although many papers focus primarily on the financial services industry, their insights and prescriptions are applicable to most other industries. The dynamics of marketing risk management requires a methodology and tool set that can facilitate rapid decision-making and improvement actions to lead to successful outcomes.
A risk-based compliance monitoring program will assist you in identifying, managing, monitoring, and reducing the compliance risks key to your business, as well as making board and regulatory reporting easier to conduct and maintain with less work at a group level. Risk management is an integral part of your business planning and controlling processes, especially as the scope of regulatory compliance and risk management has expanded and the potential impact of noncompliance has significantly risen.
Traditionally, corporations and legal organizations have taken a bottom-up approach when implementing risk management strategies. You are always assessing and managing risk subconsciously with each decision you make, from getting up in the morning until you go back to sleep at night. You must learn to harness this to manage the risks associated with opportunities and provide reasonable assurance that your company’s objectives will be achieved.
Performing risk analysis and risk management can be difficult due to the levels of detail and variations that are possible within different covered entities. When applying a risk-based approach (RBA), relevant persons are required to apply the approach to their anti-money laundering, especially working with organizations across the globe to create products and services. You need to ensure that your organization has the capacity to effectively evaluate third party risks quickly and with confidence.
Compliance and risk management impact strategic planning when managers, risk managers, and board directors make a final decision regarding the worth of new directions. Risk managers have the task of making solid plans to manage associated risks. Within the risk/compliance function of a specific organization, the role of the compliance/risk officer is likely to include providing relatively straightforward support and advice to the business on their specific area(s) of expertise.
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