Read part 1 of this series, “Domestic Political Risk: Operating in the Uncertainty of a New Era.” Here’s Why Compliance Solutions Are Inadequate for Managing Regulatory Changes Regulatory compliance is mandatory, but it’s not the end goal; it’s the minimum operating standard. For strong companies, compliance is a mere byproduct of performing well and…
Back in 2009, we blogged about the SEC’s decision to require board-level accountability for ERM. This decision was based on the conclusion that inadequate risk management allowed the regulatory failures that ultimately led to the financial crisis. As we wrote in that post, “boards are now required by the SEC to report in depth on…
Many companies share some problematic habits when it comes to compliance management. The worst of them is treating compliance like a checklist. In other words, thinking, “If we meet these specific compliance requirements, our company should run efficiently and securely.” While this is a simplified outlook, the point remains the same. Being compliant guarantees neither…
In light of recent events, the Environmental Protection Agency is using new monitoring techniques to evaluate the quality of companies’ classifications and reporting of hazardous materials. Ironically, as we all learned recently, even the EPA itself isn’t immune to catastrophic, if preventable, mistakes. New compliance regulations increase the importance of standardized risk identification, mitigation, and…
Here at LogicManager, we’ve spent a lot of time considering issues related to cybersecurity. To find a new way in which a cybercriminal has exploited electronic vulnerabilities, all you need to do is skim today’s newspaper, which will almost inevitably report a data breach or fraud-related scandal. An evolving set of threats means incident likelihood…
Volkswagen has been side-stepping environmental compliance standards by “programming some diesel-fueled cars to turn on emission controls only when being tested.” In the days since this discovery, Volkswagen has been hit with over 30 federal lawsuits and 40%+ decline in stock value, all stemming from the same source—poor Enterprise Risk Management. In this case, poor…
CNN’s latest news headline reads, “28 years for salmonella: Peanut exec gets groundbreaking sentence.” This story relates to the Peanut Butter Corporation of America’s (PCA’s) bankruptcy, and the largest food recall in the United States due to salmonella. Known as one of the deadliest salmonella outbreaks, the PCA’s case is linked to nine deaths on top…
The OCC released its “Semiannual Risk Perspective” and, perhaps as anticipated, banks continue to struggle plugging gaps in information technology practices. Among the risks highlighted in the study, as reported by Joe Mont at Compliance Week: Evolving cyber-threats and information technology vulnerabilities require heightened awareness and appropriate controls. The high volumes and frequency of changes…
LogicManager has long believed that an Enterprise Risk Management methodology, also known as a risk-based approach, is the best way of accomplishing any type of organizational governance. With risk as the common factor, governance activities become standardized and comparable, enabling better decision making. As it turns out, the International Organization for Standardization, or ISO, agrees.…
