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How CMS can improve focus and perspective on Risk Management

by PracticeLeague

Organisations have been recently experiencing a rapid surge of compliance and regulations, the distressing impact on the overall bottom-line and thereby the need for a robust Compliance Management Software to streamline the complex and manual compliance processes to improve overall risk management efforts. With the volatility of global business environments rapidly increasing, the unparalleled impact and scope of risks associated with business is also rising.

Research suggests that agile organizations should treat risks depending on the level of its maturity as well as the effect it has on the business, creating a path towards a risk-embedded culture. But do businesses have a robust platform in place to create a proactive risk management culture within their organisation?

Typically, businesses have dealt with risks and compliance on an ad-hoc basis and often took a silo approach when it comes to addressing both. As these activities employ varied data, managing governance, risk, and compliance activities have always been a haphazard affair, especially in times when risks are interdependent. The rising costs of compliance management have been augmenting not only because of disparate measures to manage risks but also due to addressing of compliance and risks in parallel, resulting in duplicate data and efforts.

How can businesses reduce their compliance costs without compromising on risks?

Consequently, organizations are now gearing to improve their focus and perspective on risk management by building an integrated foundation of compliances and regulations with an enhanced emphasis on risk factors that impact the performance and ultimately decision making of compliance and risk functions. The inefficiency caused by the disparate legal and compliance functions has led to the need for an integrated risk and compliance software.

PracticeLeague Compliance and Risk Management software has enabled risk managers and General Counsels to have an enhanced structure, reporting, and analysis of compliance risks. Standardized reports that track enterprise risks can improve the focus by providing data that enables better risk mitigation decisions. The platform also enables complete visibility on enterprise-wide risk and its impact on the business. Want to streamline your compliance related risks?

In organizations without an integrated Compliance Management software, the risk administration includes departments working in isolation in managing and reporting risk across operational units. While implementing a robust risk management software does not replace the need for day to day risk management, it can improve the framework and tools used to perform the critical risk management functions in a consistent manner. Eliminating redundant processes improves efficiency by allocating the right amount of resources to mitigating the risk.

Risk Management – Post 2008 Financial Crisis

As discussed in our previous blog Non-Compliance: A Ticking Time Bomb For Your Business, boards of directors are increasingly becoming aware of the need to oversee compliance regulations to protect the company from risks. They are now requiring regular updates on the status of compliances and risks within various functions of the organization.

With heightened scrutiny expected from the board members, both the general counsels and chief compliance officers are looking for solutions that bring them better visibility into the compliance functions and how it is impacting the business. Whether it is regular reporting, or annual statement, presenting the cost of compliance to the board and the risks associated with it has become a significant activity for the GCs and CCOs.

PracticeLeague Compliance and Risk Management Software allows GCs with On-demand Reporting and Real-time Analytics to monitor and track each compliance and tasks across all entities. Critical MIS Reports can also be scheduled to be delivered to emails automatically. The variety of data (status of key risk indicators, mitigation strategies, new and emerging risks, etc.) helps board members understand the most important risk areas. These reports can also help them develop a better understanding of risk appetite, risk thresholds, and risk tolerances. Looking to automate your compliance and risk management function?

Proactive Risk Management Framework

Apart from controlling and mitigating compliance risks, creating a proactive risk management culture and including risk-enabled decision making into the rhythm of the business is the chief responsibility for general counsels in today’s volatile and increased regulatory environment. With *46% of GCs becoming an integral part of the risk committee, having an integrated solution that provides seamless collaboration of both legal and compliance functions, enabling data and information to flow from one process to another and providing data-enabled insights is an imperative choice for Modern General Counsels.

With the increased stakeholder expectations and exposure to a higher degree of compliance can be damaging both financially and in reputational standing for organizations. Therefore, it is significant to employ an integrated approach towards risk and compliance management which aids businesses on not just at the strategic level but also at the operational level. Searching for a unified platform to seamless integrate compliance and risks management?

*Source: http://www.inhouselawyer.co.uk/mag-feature/managing-risk-the-in-house-view/

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