What is Compliance Risk Management?

Compliance risks are defined as the risks that result from violations of laws, regulations, codes of conduct, or organizational standards of practice. Compliance risk management is a part of compliance management and it helps identify, assess, and monitor and manage risks that might cause because of non-compliance. Compliance requirements differ from sectors to sectors. The government and regulatory agencies specify rules and regulations based on which companies in a particular sector should do business. For example, banks and financial institutions face the most complicated regulatory environment.

The Two Big Compliance Fines of 2020

Regulatory watchdogs around the world served stiff penalties in 2020, with major financial institutions being asked to own up for their deficiencies and malpractices. Citigroup faced a $400 million fine for risk management shortfalls, JP Morgan was charged $920 million for illicit market activity, Westpac agreed to a record fine of AUD 1.3 billion for anti-money laundering breaches, Goldman Sachs was fined $2.9 billion in connection with the 1MDB scandal, and Wells Fargo saw a huge $3 billion penalty for he fraudulent account fiasco.

5 Pressing Compliance Challenges You Will Face in 2021

The year 2021 ushers in a new decade of business change, especially considering the roller-coaster that 2020 was. As organizations move forward, there are various compliance challenges both new and old that compliance officers must come to terms with. Compliance refers to playing according to the rule book, so amid geo-political changes, data privacy concerns, questions on operational resilience, and cybercrime threats, there is new interest in policy and regulatory mandates.

Ready to get Started?

Experience our Award-winning GRC platform!

Drive efficiency and value across your business with VComply’s user-friendly platform.
Product Enquiry
For any product enquiries, get in touch with a product specialist today!
Help Desk
Find your answers in our expansive knowledge base.
Start for Free
Ready to Ditch Spreadsheets Forever?
Since VComply is entirely configurable to match you internal/external policies and controls, we want to ensure you're set up correctly the first time.

Tell us a little about yourself below, so we can have a customer success rep reach out directly to get you onboarded.