Understanding the difference between compliance and risk management
In our previous blog we discussed the difficulties associated with compliance and the growing concerns of many organisations trying to navigate through the mind field of regulations and legislation.
The increase in compliance regulations and the growth of corporate and social responsibility brings new challenges to company directors, motivating them to work more closely with their managers and risk management teams.
However the trials associated with compliance don’t always fall under risk management.
Although risk management and compliance are interrelated they are not the same; Compliance regulations standardise business practices ensuring that organisations act in a fair and ethical manner. The risk management function focuses on risks in relation to strategic planning development.
Compliance is becoming a constant factor in business planning but is not always the risk management team’s area of expertise.
Organisations need to be confident that they have a knowledge of two areas in addition to risk management: Regulatory compliance and Corporate Governance.
Company Director, Mark Henderson explains:
“The complexities of compliance increase as determining factors increase, for example company size, number of professional staff employed, number of UK locations etc.
In some instances for smaller organisations requirements can be waived.
We are finding increasingly that organisations simply don’t understand what is and what isn’t expected from them.
We’re here to bridge that gap and give organisations confidence in their operations.”
If you have any questions about compliance or what is expected from your organisation, get in touch with Mark Henderson ator on 07732 408 678.