Risk management and compliance are terms that have been gaining prominence in the corporate world. These are activities that are part of good governance. In addition, they aim to benefit organizations in preventing legal threats and asset security company physicists.
Faced with the current dynamic and often threatening scenario, there is nothing better than establishing and prioritizing these methodologies. They are important to optimize and facilitate the integration and the transparency of procedures. This causes the occurrence of problems to be reduced.
For you to know more about it, we will explain what it is compliance and risk management. Furthermore, we will talk about how to promote integration between these two areas. Keep reading and check it out!
What is risk and complication management, and why is it important?
The management of risks constitutes several specific processes and activities. Its objective is to monitor, repair problems and avoid failures that compromise a business. Therefore, managing risks means defining strategies that allow a balance between the goals to be met and the various dangers that surround them. This also enables the company to act in a preventive manner and avoid losses of both resources and people.
Already compliance is related to a series of control mechanisms. Its purpose is to ensure that the company's processes comply with current legislation or even with the company's security policy and code of ethics.
The concept involves a good relationship with investors, customers and suppliers. That is, the entire relationship chain of the institution. The main function of compliance is to minimize risks and guide the behavior of companies in the market in which they operate.
Although they are different concepts, it was clear that both compliance and management of risks have a common goal: to reduce the company's losses.
Whether due to threats and external factors or illegal activities in the company, both methodologies are essential to guarantee the suitability and integrity of the business. Therefore, integrating the two concepts is a way to generate competitive advantage and more value to the business.
What are the benefits of combining compliance, risk management and governance?
Many managers may not understand how the integration between risk management and compliance can benefit institutions. Especially when associated with good Corporate Governance practices.
The association of the three practices is related to the acronym GRC (Governance, Risks and Compliance). It consists of a mechanism that involves the process integration of an organization. The GRC serves to ensure the compliance of operations, increase the performance of activities and bring transparency to processes. In addition, diagnose possible threats that can cause damage to the business.
We live in a competitive market. It is characterized by increasingly demanding consumers and with different regulatory standards. So, we can say that integrating risks and compliance is the solution for companies to increase their productivity and improve the alignment of strategic planning. For this reason, the GRC is critical.
What are the main actions to promote the integration between risk management and compliance?
As we saw compliance and risk management are fundamental practices that are part of the management of companies. They guarantee safety and compliance with current regulations. In view of this, the business is able to direct its efforts to identify failures and map risks. As an example, we can mention those of an operational, financial or environmental nature.
In addition, the integration of methodologies includes the analysis of the impact that the risks can bring to the company, as well as the dimension of this problem. Below, check out the main actions used to promote the integration between risk management and compliance:
- train employees and promote a culture of compliance;
- hire qualified professionals to work in the area;
- evaluate the performance of each sector;
- map and monitor risks;
- develop strategies to contain threats;
- carry out monitoring through indicators;
- prioritize objective communication between sectors;
- draw up a compliance policy.
Finally, management risks and compliance are extremely important practices for companies of any segment and of all sizes. Investing in the application of these methodologies is, therefore, a strategy that ensures the continuity of business activities safely. Especially in the face of an uncertain market that is undergoing changes.
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