How do you manage compliance and risk? Every business has this problem and there is a 5-stage process to manage it;

  1. Put a system in place
  2. Define risk
  3. Identify risk factors
  4. Add regulations
  5. Update continuously

Simple, or is it?

First of all, you have to put a system in place, that is harder than it seems and can be very costly. Especially for small businesses and many don’t know where to start.

Risk equals uncertainty. In today’s marketplace with everything that is happening there has never been more uncertainty.

Let’s be clear, managing risk does not eliminate risk. Risk is still there, you are now balancing how you manage risk against reward. Every business operation has an element of risk. This is why we carry out a risk assessment to determine the level of risk. Once this is known you can then put controls in place to measure and manage each element.

Manage compliance and risk

Let’s look at each stage in more detail.

  1. Put a system in place

Any system should provide you with a method for communicating and documenting risk factors. Therefore, this must include:

  • The risk measurement (low, medium or high). But more importantly, a methodology to assign a risk factor to an event.
  • Quality or risk rating – how your management/board identifies, measures, controls and monitors each risk factor.
  • A risk summary – the balance between risk and reward
  • The direction of risk – increasing, unchanged or increasing.
  1. Define risk

The definition of risk is “a situation involving exposure to danger”.  All projects, programmes and new processes are risky. This means a risk assessment must be carried out whenever you start a new event. Each risk should be identified, documented and quantified against your businesses tolerance for risk.

  1. Identifying risk factors

The bigger the process the greater the risk, therefore, the more extensive your risk management document process must be. The reason for this process is to ensure that correct controls are in place before any work commences.

Things to consider are:

  • Identify the full project team that will be involved
  • Ask all member to identify risks in their area of expertise
  • All suggestions should be recorded and documented, no matter how trivial they may seem
  • Third-party involvement
  1. Add regulations

Whether we like it or not, regulations are part of everyday life and have to be considered at every stage. Above all, every business is subjected to different regulatory compliance. These can be legal, environmental or advisory. So be aware and if in doubt, bring in an expert in that area.

  1. Update continuously

A risk assessment of any work is a fluid process. In other words, it has to be continually updated as it progresses. Risk has to be assessed at current and future stages, so your risks will change at each stage.

What does this mean for me?

Unfortunately, managing risk isn’t the most exciting thing you will do in your daily life! It can be tedious, boring and downright soul-destroying. How do you manage all this documentation and collate it into readable and interesting reports? This can be difficult and costly. Fortunately for you Unleashed can help.

What Unleashed can do for you.

Unleashed has partnered with KissFlow to allow your business to automate the process of managing compliance and risk from start to finish. Kissflow, will remove all manual forms from your business and automate them. We can then add workflow and authorisation within a simple easy to use app that is cost-effective and easy to setup. For more details or to arrange a demonstration call on 0333 240 0565 or visit our contact page.