How to Mitigate Compliance Risk Factorsadmin
In today’s business world of cut throat competition, it is very required from the corporates that they follow certain principles that will help them to mitigate the compliance risks.
Compliance is defined as the outcome for adhering to the Government rules. Compliance Risk can involve legal and financial consequences for failing to act according to certain established regulations required for running of a business. Statutory Compliance in India is a very must for every small and big business house and it goes without saying that failure to adhere will draw strict legal and financial consequences. Many corporates seek the help of compliance services providers to mitigate the risk factors.
Important to identify the risk factors
The amount of risk involves determines actually the intensity of the compliance risk management program. The risk assessment should involve calculating residual and inherent risk. Inherent risk is the level of risk before the controls are applied, while residual risk refers to the risks that are post-application of the controls. A professional Compliance services provider is in a better position to assess the risks involved for a particular business. Compliance risk management actually involves identifying, prioritizing and assigning accountability for managing potential non-compliance threats that may lead to various kinds of unpleasant situations. Adhering to labour law compliance is a very basic and fundamental duty of any recognized business establishment in India.
Technology and Tools should be in place
In today’s modern business era, the combination of business and best practices can definitely make your compliance process more attractive. Ensure that you use tools that can help you extract data from the system and tell you what is required and what is deviating.
A Sound and a full proof compliance strategy should be in place
This is a strategy that involves successful anticipating of future industry trends across business, products, services and geographies. This actually will help the business to have a competitive advantage and one way of doing this is to seek the services of a reputed compliance services provider in India.
There should be greater collaboration among those in various compliance areas that may include senior managers and risk management teams. A good example is to have in place an automated workflow to deal with the complete compliance process. The workflow may be developed jointly by the compliance management and the development teams. It is a very effective way when it comes to deal with critical components of compliance such as labour law compliance.
Training is an important step
If you really want a better management of compliance risks, then it is important to have a well-defined process and well-documented policies, procedures and guidelines. It is important to communicate expectation and values properly. Proper training makes everyone aware of what he or she should adhere to – all related laws, regulations and company policies. There must be periodic checks to ensure that people are following the rules and surely a time will come when compliance culture will take effect in totality.
For compliance management to succeed, just following the right strategies and using the right tools may not be enough. There should be a sincere effort to build a culture of compliance across the organization. Adherence to compliance should come from within the business leadership and not out of fear of its consequences. Seek the services of a reputed compliance services provider in India to avoid, TalentPro perfection in your business with our professional and comprehensive range of compliance management services