What is Compliance Risk Management?
Compliance risk management, which is a subset of compliance management, involves identifying, assessing, and monitoring the risks to your enterprise’s compliance with regulations and industry standards, putting internal controls in place to ensure that you are compliant, and monitoring those controls to be sure that they’re effective on an ongoing basis. A compliance risk management program notes the material losses and exposures to your organization that non-compliance could cause, including legal penalties, fines, business loss, and reputational loss.
Given the variety of regulations with which organizations must ensure their compliance, such as SOC 2, GDPR, HIPAA, ISO, and others — a company should consider how it can best develop a well-integrated compliance strategy to span their entire company.
A comprehensive compliance risk management strategy enables an organization to understand and effectively address potential threats to its ability to conduct its business while complying with standards and regulations.