In the last few years compliance has gained notoriety. Therefore is important to assess the need of a Compliance Structure inside the company. That’s why we brought four questions that may assist you in which way the company should go.
Corporate Risk Management and Compliance are programs that prevent, detect and act on improper actions. Those programs are extremely important because they can generate value for an organization and ensure its survival.
Even when organizations are not required by laws or regulations to include Compliance Programs, it is extremely effective to carry out Compliance Programs regularly, that way it’s possible to reduce fines, penalties and prevent future investigations, whether civil or governmental. It also brings recognition as an organization that protects its reputation.
Compliance programs are defined by local laws and companies ethic behaviour standards, those elements are recognized and predefined by regulatory agencies and by the company itself.
The elements of Corporate Risk Management are part of an effective compliance program and they are known as steps to describe risks and prevent them.
Members of senior management and governance teams have many responsibilities for Risk and Compliance.
First of all, the senior governance and management team have the function of seeing the Compliance Program thoroughly, this means that they have to ensure that the program is effective, designed to mitigate risks and ensure enough resources to prevent and detect potential misconduct.
It’s also important that the co-workers offer the example for everyone, showing to employees and others that the organization acts in compliance and everyone who is involved should act properly with the company code of conduct and ethics.
Anyone who participates in any scheme that has any irregular conduct is a target for penalty. There are punishments that reach only the internal level of the company and some can expand to justice agencies.