Compliance is a crucial aspect that can sometimes be overlooked by fast-growing companies amidst challenges such as scaling operations, maintaining a competitive edge, navigating pandemic-related issues, weathering recessionary pressures, addressing the scarcity of skilled workers, and ensuring the well-being of their workforce. As these companies flourish, the importance of honing their compliance and risk management initiatives cannot be overstated, especially in an era marked by geopolitical tensions and an unpredictable economic landscape.
A risk governance framework or risk management framework (RMF) is essential for organizations to effectively manage and mitigate risks in a structured and consistent manner. It creates an organized approach to identify, assess, and manage risks across the organization, promoting transparency. It enables stakeholders, including employees, management, and board members, to clearly understand the risks the organization faces, the measures in place to mitigate them, and the potential consequences of those risks.