Compliance programs typically prescribe risk management actions to the business, believing this makes risk ownership easier amid competing priorities. Though it may have been effective in the past, prescriptive risk management undermines long-term risk management goals and is no longer tenable.
Empowering the business to own risk management yields significantly better risk outcomes than prescription because employees who are empowered to manage risks are more likely to act on observed risks, report identified risks and feel confident owning risks.
Legal and compliance leaders must empower the business to own risk by:
- Clarifying risk management roles and responsibilities
- Providing tools and resources that empower the business to own risk
- Ensuring employees feel accountable for managing risks
Download an excerpt of our research on empowering the business to own compliance risks below.