Professional organizations dealing with risk management issues and showing interest in the subject of risk management have made a great contribution to the development of standards.
What Do You Need to Know About Preventable Organizational Compliance Risks?
Preventable organizational compliance risk is a rapidly developing area. There are many descriptions of different types of what is included in the concept of risk management, how to be guided by it, and for what purpose. It is especially important to understand that risk management standards include both “positive” and “negative” aspects of risk to the organization.
Preventable organizational compliance risk is not just a tool for commercial and public organizations. First of all, this is a guide for any action, both in the short and long term of the life of the organization. The concept of risk management includes the analysis and assessment of the strengths and weaknesses of the organization in the broadest sense, in terms of interaction with all kinds of counterparties.
There are many ways to achieve the goals of preventable organizational compliance risk and therefore it is almost impossible to combine all areas into a single document. This is why these Risk Management Standards are not intended to be normative, the application of which will lead to the completion of appropriate forms or the initiation of the certification process. By following the components of this International Standard and choosing different ways and methods, organizations will be able to demonstrate their conformity. This Risk Management Standard is a “best practice” against which organizations can assess themselves.
Any action leads to events and consequences that can represent both potential “positive” opportunities and “dangers” for the organization. Currently, risk management includes the concepts of positive and negative aspects of risk. Risk management standards, accordingly, consider risk from these positions.
4 the Most Preventable Organizational Compliance Risks
Among the most preventable organizational compliance risks are:
- Easy Collaboration.
- Audit Trails.
- Secure Communication.
- Data Protection.
Risk assessment consists of risk identification, analysis, and comparative risk assessment. For this, quantitative or qualitative assessment methods, or a combination of both, are used. Qualitative methods are often used when risks cannot be quantified, and when sufficient reliable data to quantify is either not available or is too expensive to obtain and analyze. Quantification methods tend to be more precise and are used for more complex and complex activities in addition to qualitative methods. Qualitative methods are most appropriate for risks for which the organization has a history and frequency of variability, and therefore can be reliably predicted.
Brainstorming is a method of preventing organizational compliance risks that are used to solve a number of problems that require non-trivial approaches. Refers to the methods of expert assessment, as it involves the participation of a group of people who are specialists in a particular field. As a rule, representatives of top management act as participants in brainstorming sessions for risk management purposes, although it is possible to involve experts, especially when identifying and assessing specific risks. The recommended number of participants is 8-10 people. A small number of participants can lead to sluggishness of the discussion and low efficiency of the process, a large number can lead to difficulties in regulating the discussion and fixing ideas. Brainstorming can be used in conjunction with other risk assessment methods, or alone as a method to stimulate creative thinking at any stage of the risk management process.