Compliance risk management includes making sure your business is operating ethically and appropriately in various functions, from health regulations to human resources. Compliance risk assessment means taking a closer look at all functions of your business and identifying any issues or problem areas.
Most companies are used to putting out fires as they crop up. The idea of scanning, rating and prioritizing the aspects of business on their flammability potential can seem like a daunting task.
Understand What You’re Doing
When it comes to risk assessment, the key is to step back and understand that you’re not judging anyone’s performance when evaluating inherent risk. You’re merely looking into the products, services, and processes of your company so that you can identify where compliance risks may be.
Once every facet of business operations has been assessed, they are given a risk rating. A low-risk rating means that everything is operating as it should be, while a high-risk rating means something is functioning incorrectly or not at all and needs to be addressed immediately.
Items are then organized by risk rating and prioritized based on which ones should be addressed first.
After your business prioritizes risks and decides on a plan of attack, the next step is to implement that plan and address all high-risk items within your company. A compliance risk assessment is important because it allows a business to identify and address potential violations before they arise. Penalties for compliance violations can include paying for damages, fines and even loss of clients. This can seriously damage a company’s reputation and credibility as well as business opportunities.
Contact us today to better understand your risk and how Qsource can help.