How important is compliance and risk management for large companies?

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Does your company follow compliance and risk management rules? Ignoring these two control mechanisms can cause a series of complications for any business, from a financial point of view to ethical issues.

Therefore, it is important to understand these concepts in depth, understanding their benin phone number list and how they should be applied to business strategy. Indicating the first steps for these points is precisely the objective of this article. Enjoy reading.

What are compliance and risk management?
Objectively, both compliance and risk management work towards the same goal: to protect the company's assets, whether physical, legal or even reputational. However, although they can work in parallel, there are some distinctions between them, as we will point out in the following topics.

Compliance
The term compliance does not belong to Portuguese. It is derived from the English verb “ to comply” . Thus, in a loose translation, we could say that it indicates the ability to act in accordance with the rules.

So that's why this is usually the most widely adopted definition for this term: compliance would be a company's ability to adopt processes and practices in accordance with current legislation.

Compliance requires companies to adapt their rules in all areas of activity, including employees, suppliers and potential relationships with government agencies. In addition, a compliance program must include internal control mechanisms to ensure that everything is in compliance and to deal with any deviations in the best possible way.

By avoiding these deviations, compliance acts to avoid operational, financial and reputational losses. All of these, to some extent, can compromise business continuity, which only reinforces the importance of these policies.