We are also active compliance advocates and thought leaders, contributing to the discussion and improvement of best practices through trade associations, publications and presentations, and various conferences. After a compliance risk assessment, a company can determine its level of compliance to discover what changes need to be made to make improvements. An organization uses this information to create and implement a compliance risk management strategy that can be used to ensure compliance with the law. The assessment could, for example, reveal that the company needs safer ways to work remotely. The organization can plan to address this vulnerability by implementing more in-depth remote work policies. As a result, legal and compliance departments are increasingly making risk management a top priority – and a central departmental mandate – according to another Gartner report. The value of both divisions is based on “the ability to help the company achieve its strategic objectives while managing legal and regulatory risks, reputational damage and asset loss.” Compliance risk is the potential risk of penalties, financial loss, and property loss resulting from failure to act in accordance with industry laws and regulations, internal policies, or prescribed best practices. Compliance risk is also known as integrity risk. GRC is designed to help companies identify and assess risks to their business and reputation. All three areas are similar to incident management, operational risk assessment and internal audit.
In fact, the organization`s general counsel and legal teams need to work together to identify these risks, determine the appetite for each individual, and agree on roles and responsibilities to manage them. In addition, they must develop an effective process framework and develop reliable controls to mitigate the most critical ones. And they need to properly institutionalize these policies and procedures with risk management officers, insurance coverage, records management, strategic sourcing, health and safety, sales, and many other parts of the organization. To facilitate this alignment, ISO 31022 – Risk management: Guidelines for legal risk management has been established. It “sets out a set of principles that must be adhered to in order to make risk management effective.” A strong culture of integrity improves reporting while reducing compliance violations. “Employees with an unfavorable perception of company culture observe nearly nine times more misconduct and report 36% less misconduct than employees with the most favorable perception of culture,” Gartner said. “A strong culture means there is less risk, and when they do, leaders learn it faster.” Legal and compliance departments need to align with other assurance functions as business agility and speed become increasingly important. You need to fully integrate requirements and guidelines into today`s business processes. And they need to provide leaders with real-time risk intelligence.
This is related to the actual industry, but is considered from a legal and compliance perspective. There are many risks and compliance requirements in healthcare. Laws and regulations that pose significant compliance risks include Health Insurance Portability and Accountability Act (HIPAA) laws and regulations. HIPAA requires, at a minimum, the protection of protected health information (PHI). HIPAA also requires the protection of other data that would apply under laws other than PHI, such as genetic information, health insurance information, and other information related to the provision and payment of health services. We have been successful in helping our clients make changes to organizational culture by developing and training compliance and risk management strategies and programs that have increased risk awareness and controls. To do this, we work within your operational infrastructure with existing staff and, where appropriate, external consultants to help you implement new systems and controls. We regularly advise publicly traded and private companies on enterprise-wide risk management and regulatory compliance issues that impact their business, including: The growing risk landscape is forcing legal and compliance officers to take greater corporate responsibility for risk. Empowering employees to take charge of their own risk management results in significantly better risk management outcomes than prescribed, making employees more likely to take action, report and be assured that they have risks.
The Legal GRC Center for Innovation is a non-profit institute for the further development of legal GRC concepts and applications. The LGRC Innovation Centre serves as a forum for legal industry leaders to discuss and determine pathways for systematization and streamlining within the legal industry. The members of LGRC-CFI consist of a group of [opinion leaders] in the fields of law, business, IT and RIM. They meet in online forums and at regular conventions and summits to identify best practices in legal CRM. LGRC-CFI also regularly publishes a blog and several industry-specific white papers. The LGRC Innovation Centre deals exclusively with legal governance, risk management and compliance. Some examples relate to litigation exposure and the policies and procedures surrounding electronic contract management, particularly where contracts are more complex and extensive. These are also relevant to supporting legal retention and eDiscovery processes.
Others concern the accuracy and quality of the contracts actually performed. And, of course, the regulatory environment is constantly changing, which carries risks of non-compliance, especially with older contracts that are still in place. An organization may be involved in the following types of compliance risks: The MLS focused on compliance and legal risk management is designed to train professionals to meet the demand for legal compliance officers and train those for whom compliance is an important part of their work or career. Companies need to be aware of their compliance risk at multiple levels, not just from the perspective of the Chief Compliance Officer (CCO). While the OCC and other compliance staff are responsible for reviewing all aspects of the organization`s compliance risk, including legal, regulatory, financial and technical risks, compliance risk extends to all levels of the organization, including information technology (IT). For this reason, the organization`s IT department must be involved in managing compliance risks. Lebogang says. [15] As with Sarbanes-Oxley, opinion leaders in the legal industry saw the need for a new framework for legal GRC and borrowed heavily from IT, RIM and other industries to develop new, clear processes and rules to make navigating the turbulent waters of the legal world as easy as possible after the financial crisis.