ETHICS & COMPLIANCE RISK ASSESSMENTS

Why are Ethics & Compliance Risk Assessments Important?

1.??????They help you understand your organization’s risk profile

2.??????They provide a strong foundation for your ethics and compliance programme

3.??????They help you meet regulatory expectations

When should you risk assess?

It makes sense to conduct an E&C risk assessment when your organisation is:

1.??????preparing to implement an ethics and compliance programme

2.??????considering expansion to a new market, sector, country or region

3.??????considering a project or transaction

4.??????facing a regulatory development that might affect the organisation

5.??????contemplating a change in the organization’s business model or business developments like M&A, joint ventures, or greater use of agents or distributors

6.??????evaluating the effectiveness of the existing ethics and compliance programme, its elements and controls.

What is Compliance Risk assessment framework?

1.??????Risk Identification: Create an inventory of the ethics, compliance, legal and reputational risks confronting your organisation, industry and regions

2.??????Risk Assessment: Rank risks basis organisation-wide processes and efforts to mitigate risks

3.??????Risk Mitigation: Assign responsible parties and develop action steps and timelines

4.??????Compliance Monitoring and testing: Monitor risk mitigation and regularly repeat the process

5.??????Reporting & Escalation: Report risk assessment results to senior leadership and board

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How can a risk impact an organisation?

1.??????Operational impact: Embargos or plant shutdowns

2.??????Financial impact: Negative impact on the organization’s bottom line, share price, potential future earnings, or loss of investor confidence.

3.??????Reputational impact: Damage to the organization’s reputation or brand

4.??????Stakeholder impact: Negative impacts including loss of customer trust, key personnel leaving the organisation, elevated turnover or decreased employee morale.