What is compliance risk management?
Risk management describes the process of proactively identifying potential risks, analyzing those risks, and taking precautions to minimize risks; compliance risk management describes an organization’s process of managing the risk of non-compliance with pertinent regulations. Because compliance risk management looks different for different companies, each company should develop an appropriate compliance risk management program that is designed to suit its specific business processes and regulatory compliance concerns.
Taking into consideration the speed at which business changes and the variety of regulations with which businesses must ensure their compliance — including SOC 2, GDPR, HIPAA, ISO, and other rules and standards — an organization should consider how it can best develop an integrated company-wide compliance strategy.
A comprehensive compliance risk management strategy enables an organization to understand and effectively address potential threats to its ability to conduct its business.