Basics
The simple fact is that the world today operates in a highly regulated environment. So when it comes to compliance, we usually ask the question “What do I have to comply with?” But, far more importantly the next question is “how do you know what I have to comply with?”
Even for a small startup company, there are a few, maybe dozen laws that could apply. Knowing “what you don’t know” requires a proactive approach. Over the years, people began to understand that compliance could be both prophylactic and reactive at the same time. It is forward thinking and it is strategic.
Board of directors whom must always act in the shareholder’s best interest. Fiduciary duties of the Board of directors involves the establishment and maintenance of a compliance program. Sarbanes-Oxley actually incentivize every director to make sure that there is a good compliance program in place.
Besides Enron, the course case-studied quite a few companies which face serious reputational and economic harm: Google, Uber, Valkswagon, Facebook. A good compliance program actually promotes good business.
A business of high principle generates greater drive and effectiveness because people know they can do right thing decisively and with confidence. They know that any action that is even slightly unprincipled will be generally condemned.
Marvin Bower
Risk management
The concept of Compliance and Risk Management intertwine inextricably. Risk management include financial risk, operational risk, reputational risk and compliance risk. Importantly, not focusing on compliance risks can jeopardize financial stability, operational soundness and brand investment. Compliance needs to identify and present the risk, it needs to regularly remind everyone of any duty, goal, promise or obligation that is implicated.
Insurance often provide another means of addressing risk. Compliance generalists and specialists together are both key to helping manage compliance.
My Certificate
For more on what is compliance, please refer to the wonderful course here https://www.coursera.org/learn/what-is-compliance
I am Kesler Zhu, thank you for visiting. Check out all of my course reviews at https://KZHU.ai
