Because of increasing international regulations and rising stakeholder expectations, organizations are more exposed to compliance risk than ever.
That’s why The Capital Group Ltd. offers compliance risk assessment services. We’ll help you figure out where your risks lie and what steps you need to take to mitigate them, so you can focus on growing your business instead of worrying about how much money you might have to pay out in fines or legal fees if something goes wrong.
Get Started
What is compliance risk assessment?
Compliance risk is the organization’s exposure to possible legal repercussions and financial and material loss due to violations of laws, regulations, or internal policies. In other words, you are not doing what you should be doing (and being caught).
A compliance risk assessment identifies and analyzes potential risks that a company inherently faces that could jeopardize a company’s capacity to maintain legal and regulatory compliance. A thorough evaluation of the compliance obligations that different laws, regulations, and industry standards impose on your firm will help you determine whether or not your current compliance program is adequate.
Why do businesses need a compliance risk assessment?
1. Protect the company’s image and reputation
One non-compliance like environmental pollution or mistreatment of staff can ruin a company’s entire brand image or even worse. If there is one compliance blunder, word-of-mouth, media reports, and competitive discussion will help spread the news quickly.
Conducting a compliance risk assessment will reduce your chances of violating laws or regulations, protecting your business and its reputation.
2. Show care for clients and staff
Compliance is crucial to your firm’s overall health and well-being. Your team will appreciate working with a business that doesn’t take unplanned risks; likewise, your customers will likely prefer doing business with you over one whose practices might harm them or the public in general.
By doing a risk assessment, you will take the required steps to prevent penalties and other harms—and protect people you might otherwise put at unjustified risk.
3. Ensure compliance with industrial standards
Companies must follow specific industry standards and government regulations to operate, and those rules are put in place to protect consumers and workers. If your business isn’t complying with these laws, you could be putting yourself at risk for fines or even losing your operating license.
A compliance risk assessment can help you identify areas where you must change your practices or procedures to fall within legal guidelines. It also allows you to review how well your company handles risks related to these areas.
4. Informed decision-making
You need to identify your business’s risks to know how to mitigate and prevent those risks. Although it may seem as though fundamental laws and general rules are all you need to follow, ensuring every risk is fully understood before acting on any information is crucial. If you want to make wise business decisions, your organization must address each of its regulatory risks.
5. Save time in the long run
If you consult your compliance risk assessment frequently, it can save you the time to assess and deal with risks on a case-by-case basis. Similarly, if your business regularly deals with non-compliance issues, handling them as they arise may be easier than making changes in response to a single incident.
Although you may feel pressed for time, reducing your risk is essential. Take steps to eliminate what remains of the problem so that compliance becomes more effortless in the future.
Steps involved in the process
1. Outline the applicable risks
Compliance regulations can be confusing, but you should know what rules apply to your business because your risks are based on laws, government standards, and industry practices.
The first step is to outline your most important processes and databases. You will need input from every organizational business unit for each of these initiatives and then note any areas in your core operations that point toward regulatory non-compliance.
2. Review all current policies and procedures to detect, prevent, and correct risks
Examine the steps you take to ensure compliance. Are they effective? Can they be improved? Do these safeguards address all the dangers in Step 1 of this process? If control is missing, add it now instead of reinventing the wheel.
3. Prioritize the key risks and then apply controls to mitigate them
Unfortunately, no business can eliminate all compliance risks. Moreover, specific compliance issues will be more pressing than others. Prioritization is beneficial and can help reduce risk as much as possible for your organization by focusing on the most significant problems first.
After you have prioritized potential risks, it is crucial to determine which controls are currently in place or need to be implemented. Ask yourself how current processes fall short of containing such risks and brainstorm ways to improve them. Also, ensure that there will be a way to spot future breaches of rules for these severe dangers. It will help prevent any unexpected non-compliance costs.
4. Implement and test the control measures
After deciding what to do about compliance risks and implementing steps to reduce them, you must test the controls for validation. Examine those findings and assess whether the control has achieved its intended result; if not, find out why it’s failing and apply more or better controls until you reach the desired performance.
5. Perform a periodic review of the compliance risk assessment
An ever-changing environment demands that a risk assessment be kept up to date so the company can continue to get protection from it. Therefore, review your controls, test them again occasionally, and reevaluate their effectiveness as the company expands and legal requirements change.
What are the main differences between compliance risk assessment and other types of risk assessments?
Risk assessments exist for various business risks and industries. For example, a financial institution’s risk assessment might include the threat of cyberattacks and data loss by natural disasters. A manufacturing company’s risk assessment might include the danger of fire, theft, and damage.
Compliance risk assessments are specifically associated with the risks of non-compliance in your industry, like fines, reputational harm, legal implications, or the inability to run the firm. These are all examples of potential sanctions. In this case, compliance refers to how closely you adhere to regulations or standards set by other entities—for example, government regulators or industry organizations.
Compliance risk assessments are carried out by your compliance department’s chief compliance officer or head. Other risk assessments are performed by, for example, the CFO (chief financial officer), CIO (chief information officer), or another high-level executive.
How can The Capital Group Ltd. help?
In today’s fast-paced business world, it can take much work to keep track of everything, and with so much at stake in compliance, you need to ensure that you’re doing everything right.
That’s where The Capital Group Ltd. comes in. Our consultants have extensive knowledge of laws and regulations that affect businesses, including those related to legal matters. They also have in-depth experience with public and private companies, so you can rest assured that our advice will be relevant to your company’s needs.
You can count on us for the following:
- A thorough assessment of your company’s current legal standing and potential risks.
- An honest evaluation of whether or not your company is up to date on all its legal obligations.
- A complete analysis of what changes need to be made for your organization to be in full compliance with all regulations.
- A clear plan for moving forward, including how to implement the necessary changes.
- A timely and periodic review and update of the compliance risk assessment plan.
We are the people to contact if you’re looking for a partner to help you keep your business safe and secure. Our goal is not just compliance—it’s helping you avoid problems before they happen!
Contact Us for Free Initial Consultation
Our difference
- We’ve been providing compliance risk services for years, and we’re not going anywhere. We take pride in our consistency and reliability, so if you hire us to perform compliance risk assessments today, we’ll be here tomorrow—and the day after that—to do the same job just as well.
- Our skilled professionals have experience with laws and regulations in many industries. They are ready to help you navigate your industry’s rules and regulations so that you can focus on growing your business without worrying about whether or not your company is compliant.
- We deliver a complete package that includes everything you need to complete your compliance risk assessment, from the initial consultation to the final report.
- Our rates are very competitive. We understand that every company is different, so we offer customized packages to fit your needs. We also offer free consultations for new clients to help them determine the best way to approach their compliance needs.
- We have a friendly customer support team that will answer any questions you may have about our process and what we can offer you. We are very open to new ideas, so feel free to reach out if you think there’s something else we could do for you.
Our team
Whom do we serve?
We are a compliance risk assessment firm that provides services to businesses and start-ups to help them understand their risks and get ahead of them. We also work closely with them to create specific plans for managing their risks.
We provide our clients in The Bahamas and the Caribbean, Latin America, United Kingdom, and Florida with a comprehensive analysis of their compliance with applicable laws, regulations, and standards.
Need consulting? Let’s Connect
Do you want to know how to keep it compliant with government regulations and industry standards? We’ve got you covered.
Let us show you how we can help you reach your goals. Contact us today by calling us at 242 677-5265 or filling out the contact form, and let’s get started!
FAQs