The effectiveness of the compliance function in an organization is measured using a compliance risk analysis. The emphasis of the analysis can be on administrative embedding or on continuous monitoring of the information infrastructure and/or applications.
Based on the findings of the analysis and the results of discussions about these findings with key officials, a more optimal compliance function can be developed and indicated how this can be achieved.
Compliance risk analysis, why important?
The results of the risk analysis are important for management because:
- Indication of current situation: it provides an indication of the degree of compliance with legislation, agreements and/or policy requirements. It also provides an indication of the extent to which the organization is aware of the risk areas and risks of non-compliance.
- Effectiveness and efficiency: an impression is created about the effectiveness and cost efficiency of the existing compliance function.
- Insight and overview: there is an overview and insight into possible blockages to make the internal organization more effective and cost-efficient.
- Reason for a compliance risk analysis: the reason for a compliance risk analysis on internal control and risk management can be internal or external. Based on this reason, the scope can be on the organization as a whole or only on the adequate functioning of the business compliance function.
- Safeguarding Trust: Creating and maintaining trust with both business partners and the individual. The individual has control over the processing of their own (personal) data.
- Savings through efficiency: optimizing the effectiveness and cost efficiency of control measures within your organization.
- Transparent to society: being accountable for accountability to society about effective operation of control measures.
- Change in supervisory arrangements: regulatory arrangements in legislation require companies and institutions to deliver a result instead of making an effort.
A practical approach for performing a compliance risk analysis is to include a model of maturity levels of compliance function in the research. We could take the steps as follows:
- Determining the scope and scope of the investigation as well as the planning of activities & internal and external budgets in time, capacity and resources;
- Carrying out the planned activities;
- The report consists of a report of the existing situation in which the findings have been mapped out. The findings give rise to proposals for adjustments.
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