The latest issue of Compliance Insiderή, a publication for Chief
Compliance Officers published by The Red Flag Group, looks at solutions
to common challenges faced by global companies in the development of a
As legal and regulatory requirements increase, so does the importance of
a robust, sustainable compliance framework. Senior compliance executives
understand the need to align their efforts with a company’s strategic
vision and goals to effectively support business growth, but this is
often easier said than done.
Effective compliance frameworks that provide comprehensive protection
from risk and stand up to regulatory scrutiny have common attributes
A clear focus on a company’s real risk, achieved by conducting a
thorough risk assessment
Mechanisms for the efficient remediation of potential issues as soon
as they arise
A well thought out training programme tailored to the needs of
A foundational element of any compliance framework, the goal of a risk
assessment is to identify and measure a company’s risks in order to
implement policies and procedures that effectively mitigate these.
Whilst it is impossible to completely eliminate all compliance risk from
business activities, a methodical, well-documented approach to assessing
risk can prevent legal and regulatory action by demonstrating an
organisation’s commitment to compliance.
Regulators acknowledge that it is impossible to anticipate every risk
scenario when designing compliance policies, however they expect to see
procedures in place that allow the remediation, or correction, of
unforeseen issues as they arise. A key element in a remediation strategy
is ensuring good lines of communication with all employees, allowing
them to escalate issues which can, in turn, be assessed, addressed,
documented and taken into account when updating policies.
It is widely understood that there is no ‘one-size-fits-all’ compliance
framework, however, when it comes to training this message is taking
longer to get through. Dull, irrelevant training sessions leave
employees disengaged and unaware of the critical importance of
compliance. This leaves companies exposed to the potentially severe
consequences of inappropriate business conduct by their staff. To be
successful, training must be tailored, interactive and should
incorporate assessment mechanisms to ensure employees are gaining the
knowledge required for effective compliance.
Read Compliance Insider at: www.complianceinsider.com.
The Red Flag Group
Jenna Kim, +82 70 4106 7743
Director, Corporate Marketing