Risk management

28 february, 2023

Companies face various types of risks that can negatively affect their operations. To ensure success, companies have to take proactive measures to manage risks, including compliance and integrity. Implementing compliance plays an important role in risk management, as failure to meet standards can result in significant financial and reputational damage.

1. Construction of a "map" of the company's main risks (risk areas identification)

- It is necessary to determine the list of possible risks, their gradation by the level of seriousness, the probability of their occurrence, monitoring, elimination and minimization measures.

2. Effective management of identified risks

- You should not spend the same amount of resources on managing different levels of risk. For example, transactions/business processes with a high level of risk should be given more attention than those with a low level of risk. Nevertheless, the identified risk indicators must be analyzed, even if they seem irrelevant.

3. Regular internal audits

- In addition to the initial audit for the launch of the compliance system, internal audits must be conducted regularly - their frequency is determined depending on the specifics of the company's activities.

Detailed instructions for business "Basic principles of risk identification and their minimization" at the link:  http://bit.ly/3lu1w0D