Risk Management

4/30/2015

1

Compliance Management

Objectives

• Distinguish risk management and overall compliance management

• Best practices

4/30/2015

2

Legal and Regulatory Risks

• Torts

• Crimes

• Statutory/regulatory compliance

• Contract

How to Think about Risks

• Exposure/consequences

• Likelihood of occurrence

• Ways to manage: – Accept/ignore

– Transfer

– Mitigate

4/30/2015

3

Compliance Management

• Designed to reduce overall exposure

• Ensures compliance with laws and regulations

• Includes managing complaints and conducting regular audits

• Can be a competitive advantage

Summary and Best Practices

• Establish company code of ethics

• Compete hard, but fairly

• Educate management and employees on relevant laws and regulations

• Clearly define scope of employment for employees

• Prepare for problems