Corporate Risk Management: Creating an Effective Compliance System.

There are a variety challenges that must be overcome before a fair, good and just system can be created. It is subject to human frailty,emotions, misperceptions, miscommunications, lack of cohesiveness, and lack of full disclosure or access to a complete set of facts.  Unfortunately, this does not relieve us of the obligation to create a compliant system.

Not all is fair in love and war, and the same is true in business. There are constraints that we, as employers, must create to mitigate against the inherent risks that are found in any corporate organization.  Winning at all costs or focusing on just the profit, will not lead to a good or even a profitable company in the long run.  The Company will drive out the only employees that are worth keeping, because of their distaste for such poor decisions and ill advised tactics.

If the key supervisors, managers, executives, officers, or owners do not set the right example, then the inherent risks will escalate and be subject to manipulation.  There can be no shifting of responsibility for bad decisions or actions, in order, to ensure that the risks are mitigated properly.   Without accepting responsibility for your own actions you cannot learn from your mistakes and correct them.

If you do not set that example, then you cannot expect your employees to do the same.  Without having some methods to create checks and balances for the inherent frailties of mankind or emotions that we all have on occasion, there cannot be a reduction in wrongdoing or bad behavior.  It is what our employees do that determines the character of our corporation, not what the employees tell us they are, intend to, or will do that will determine if the compliance system will work efficiently.

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