Consequences of Non-Compliance to the Procedure for Initiating Remedial Action and Follow-up on Continuous Risk Assessment are Explained (SO4-AC3)

Lawsuits: Failing to ensure your company complies with all laws and regulations can increase the odds of being sued, whether it's by an employee, competitor or customer.

Catastrophic Losses: The failure to adequately evaluate, prevent and minimize damage from risks can ruin your company entirely. You could suffer irreparable damage to your company's reputation by failing to prepare to manage difficulties.

Building in risk remedial actions: this can demonstrate that you intend to control non-compliance in a very strict and effective way. Failing to build risk management into your company can signal a lax attitude. And that lax attitude could be tempting and impossible to ignore for unscrupulous employees.

Lack of Transparency: Transparency both requires and creates mutual trust, a key component of a company culture that's genuinely engaged.

When a company integrates risk management into multiple aspects of its operations, it creates transparency: an acknowledgement that risks exist and that the company and employees have a responsibility to mitigate them.

But if risks are ignored: or worse, hidden from employees - then business owners could miss out on vital contributions from staff. It can also create barriers between themselves and staff. These barriers don't build trust. They don't bring employees on board with the notion that risk management is everyone's job.

The most successful risk management is a general approach: one that covers company culture, one that recognizes the vast benefits of assessing and managing risk and one that sees the potential risks of failing to address the threats to a business.

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