What is the role of risk and compliance?
Risk activities are often tied to processes – compliance is tied to a set of requirements. The focus area of risk is uncertainty, and compliance focuses on adherence. The control of the risk program is intrinsically internal to the organization, whereas compliance is tied to external regulatory bodies.
What are examples of compliance risks?
Common compliance risks involve illegal practices and include fraud, theft, bribery, money laundering and embezzlement. Privacy breaches. A common compliance risk is the violation of privacy laws. Hacking, viruses and malware are some of the cyber risks that affect organizations.
What are the three components of compliance risk management?
The following are the critical elements of an effective compliance program: Establish and adopt written policies, procedures, and standards of conduct. Create a programming oversight. Provide staff training and education.
What is the difference between risk and compliance?
Compliance is prescriptive and generally results in a more tactical, check-the-box approach. Risk management activities try to be predictive, anticipating risks; and require a strategic approach. Organizations must comply with existing laws and regulations to be compliant.