Compliance risk refers to an organization’s potential exposure towards material loss, legal penalties, and financial forfeiture as a result of not acting in accordance with internal policies, prescribed best practices, and industry laws and regulations. Integrity risk is another name for compliance risk.
Failure of an organization to comply with applicable regulations and laws may affect its revenue. This can result in loss of business opportunities, reputation, and valuation.
Attorneys at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and surrounding locations.
Compliance Risk Types
These are a few types of compliance risks that an organization may get implicated in:
- Illegal and corrupt practices: Common compliance risk in this regards involves, theft, fraud, money laundering, bribery, and embezzlement
- Privacy breach: Violation of privacy laws is a common compliance risk. It may involve viruses, hacking, malware, and other types of cyber risks that may affect organizations.
- Environmental damage: This includes environmental pollution and other concerns as a result of the organization’s operations
- Process risks: This is an organization’s failure to follow established procedure for task completion
- Workplace safety and health: All companies are required to follow specific legal health and safety protocols
Understanding Compliance Risk Management
This is the process of assessing, identifying, and mitigating potential losses arising from the noncompliance of an organization in regards to standards, regulations, laws, and policies and procedures.
Common Compliance Risk Management Programs
Experienced business attorneys will customize their assistance to suit the specific needs of a company. They will make use of innovative solutions and best practices for addressing complex problems.
Compliance and risk management attorneys provide clients with practical advice on remaining in compliance with applicable laws without sacrificing on competitiveness.
In specific, the work of the corporate compliance and legal risk management team of a law firm includes:
- Assisting with primary organization concerns, such as review processes, board oversight, and setting up compliance governance at a management level
- Developing management-level and board-level governance for addressing compliance requirements and legal risks, such as Hatch Act and Freedom of Information Act requirements
- Conducting risk assessments for identifying potential areas of regulatory, legal and fraud risk
- Implementing and designing overall compliance and ethics system
- Reviewing and creating codes of conduct
- Developing procedures and programs aimed at specific risks
- Conducting and developing training and awareness programs through online, virtual and live media at all levels, from senior management and board of directors to line employees
- Auditing the effectiveness of existing compliance programs
- Auditing to ensure the operations are in compliance with specific legal requirements
- Advising on document management and information management issues, including electronic communications, privacy, and records retention
- Advise on employee training that interact with federal or state government employees
- Advising clients to think beyond Dodd-Frank, Sarbanes-Oxley, and Foreign Corrupt Practices Act compliance
- Counseling on government legal issues, such as information sharing, ethics, and real estate among others
Lawyers at the SBEMP law firm serve clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, Coachella Valley, Costa Mesa, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.
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SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage, Indian Wells), CA; Indian Wells, CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.
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