Post by account_disabled on Mar 6, 2024 4:11:13 GMT -6
The handle it all youll need to comply with local accounting and tax rules. Meeting all those extra regulatory requirements could end up being a significant cost for your business. Even if your business doesnt expand geographically you can still incur new compliance risk just by expanding your product line. Lets say your California farm starts producing wine in addition to food. Selling alcohol opens you up to a whole raft of new potentially costly regulations. And finally even if your business remains unchanged you could get hit with new rules at any time. Perhaps a new data protection rule requires you to beef up your websites security for example. Or employee safety regulations mean you need to invest in new safer.
equipment in your factory. Or perhaps youve unwittingly been breaking a rule and have to pay a fine. All of these things involve costs and Job Function Email List present a compliance risk to your business. can also affect your businesss future becoming a strategic risk too. Think of tobacco companies facing new advertising restrictions for example or the late1990s online musicsharing services that were sued for copyright infringement and were unable to stay in business. Were breaking these risks into different categories but they often overlap. 3. Operational Risk So far weve been looking at risks stemming from external events. But your own company is also a source of risk. Operational risk refers to an unexpected.
Failure in your companys daytoday operations. It could be a technical failure like a server outage or it could be caused by your people or processes. In some cases operational risk has more than one cause. For example consider the risk that one of your employees writes the wrong amount on a check paying out 100000 instead of 10000 from your account. Thats a people failure but also a process failure. It could have been prevented by having a more secure payment process for example having a second.
equipment in your factory. Or perhaps youve unwittingly been breaking a rule and have to pay a fine. All of these things involve costs and Job Function Email List present a compliance risk to your business. can also affect your businesss future becoming a strategic risk too. Think of tobacco companies facing new advertising restrictions for example or the late1990s online musicsharing services that were sued for copyright infringement and were unable to stay in business. Were breaking these risks into different categories but they often overlap. 3. Operational Risk So far weve been looking at risks stemming from external events. But your own company is also a source of risk. Operational risk refers to an unexpected.
Failure in your companys daytoday operations. It could be a technical failure like a server outage or it could be caused by your people or processes. In some cases operational risk has more than one cause. For example consider the risk that one of your employees writes the wrong amount on a check paying out 100000 instead of 10000 from your account. Thats a people failure but also a process failure. It could have been prevented by having a more secure payment process for example having a second.