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How a Risk Assessment Framework Strengthens Your Compliance Standard

By February 18, 2020March 18th, 2021No Comments

Governments around the world have woken up to the fact that technology and data rules everything around us.  As a result, different global regimes have changed laws and, in some cases, enacted new laws to reflect this shift in perspective.

ISM Grid, a global, managed, IT services provider provide a framework for Risk Assessment – allowing you assess your risk exposure, craft a risk management plan and implement a solution for you with relative ease.

Why Regulatory Compliance Matters

Governments and other institutions of authority enact laws and guidelines to ensure all participants in an industry or sector of society comply with a uniform standard. The spirit of these guidelines is to harmonize several practices of excellence that produce the least risk of loss to the parties involved.

This framework of governance is applied to every facet of social and economic interaction. From workers’ rights, to the standard of fruit you can purchase at the store and everything in between.

Now, technology and data meet the same level of scrutiny to adhere to a shared understanding about the importance of data and how it is handled. The old joke of: “if you think knowledge is expensive, then try ignorance,” has specific merit when it comes to non-compliance costs with local and international standards. Analysis shows that non-compliance can cost an enterprise nearly three times as much as spending to meet compliance standards. Knock-on effects like a reduction brand “goodwill” are harder to recover from when determined to be non-compliant to Law.

The situation underscores the importance of your business having a risk assessment framework to operate by.

We provide five points of consideration when drafting a strategy to meet regulatory compliance.

Look Ahead and Plan

The hallmark of a good risk assessment framework is its proactive nature. The genesis of this nature is the ability to look ahead with the help of partners that can spot future industry trends.

Successful partners can tell you about the paradigm of perspective regarding compliance: “The further away on the horizon a compliance challenge exists, it is small enough to tackle. If you wait for this challenge to get closer, you may find it is too big to tackle.”

If meeting your jurisdiction’s regulation has your business hemorrhaging time and money, reach out to a managed, IT service provider like ISM Grid who can help you implement a robust, cost-effective solution.

Get Your People and Systems Working Together

Automating your regulatory process by harnessing technology and your staff workflow can super-charge your business value and productivity.  Working with managed, IT service providers like ISM Grid allow you to not only identify a threat but neutralize it effectively.

Automation has the benefit of reducing the risk of “human error.” This is the type of return you should get from the investment in your technology.

People in your business are still as valuable as ever. Listen to your staff as they can spot vulnerabilities and help you further develop a robust strategy.

Build a Comprehensive Framework

Having a framework template is the easiest way to stay compliant.

It requires you and your team researching all the regulatory standards or laws and integrating those standards as part of the risk management framework.

Robust frameworks comprise of:

  • A regulatory matrix outlining the applicable laws, regulations, and protocols
  • An executive summary of the compliance risk inherent in each applicable regulation or law, followed by a more detailed explanation.
  • Checklists for reviewing and monitoring regulatory compliance across the organization, compliance continuity and mitigating risk.
  • Developing a procedure for identifying breaches, informing stake holders, correcting issues, and preventing them from happening again.

The peace of mind that a risk assessment framework provides is priceless for business decision makers. It becomes a singular, navigational tool and litmus test to ensure your business’ survival and competitiveness in the tech space.

Communicate Clearly, Engage stakeholders

Getting your team involved will go a long way to your regulatory compliance effort. By integrating your compliance findings into your daily operations and business workflows, you can stay abreast of matters all year round.

In moments when you have no clear structure like when laws or regulations change, have a protocol in place which includes notifying all staff of the regulatory changes via internal, weekly meetings and email, making sure to specify how daily operations would need to be changed.

If staff still have questions, make sure managers and supervisors can assist in the effort with dedicated workshops and training. A repository of information housing regulatory changes bolsters the training effort. Training and collaboration will be key ingredients to your policy resilience.