Trends show that risks faced by Australian businesses are rapidly changing and there are new ones to worry about every year. Therefore, the best course of action would be to annually keep aware of and prepare for the biggest risks faced by Australian businesses. To give you some perspective, cyber incidents, which was ranked as the 15th biggest risk for businesses just seven years ago, is now the number one business risk!
Many organisations think of compliance as a purely legal practice. While compliance management is the process of making sure your business and employees follow necessary laws, regulations and standards, so there is a strong legal component, it is also very much a behavioural practice. This is because ensuring compliance is often reliant on the cooperation of management and staff.
A massive component of owning or running an organisation is making sure it is in compliance with external and internal regulations and policies in order to protect it from the risks caused by non-compliance. Compliance risk management is the process of understanding and managing compliance with laws and regulations and helping to better manage the risks associated with non-compliance.
In business, there are specific rules and regulations that every organisation and its staff has to comply with in order to operate safely and legally. Not complying with these standards not only poses risks to organisations achieving their overall business objectives but operating as a business in general. As you can imagine, these risks could have a massive impact, so you want to identify the obligations your organisation must be in compliance with to avoid the potential risks. This is why compliance management is so important. At its core, compliance management is the process of managing the planning, organisation and execution needed to ensure compliance with laws and regulations, and in turn, mitigate the risks that would be encountered due to non-compliance.