Compliance Management, together with governance, and risk management, are three areas that are integrated to assure that an organization meets its objectives. Governance is the process established and executed by the board of directors that is reflected in the organization's structure and how it is led toward achieving goals. Risk management is predicting and managing risks that could keep the organization from achieving those goals. Compliance management with the company's policies and procedures, laws and regulations, therefore, is considered key to an organization's success, especially in today’s heightened reality of Cyber Crime.
The objective for compliance management, along with governance and risk management, is to manipulate information in order to operate more efficiently, facilitate effective information sharing, effectively report non-compliant activity, and avoid waste. Although given different names, depending on the organization, compliance management typically encompasses compliance with applicable laws and regulations, within and without an organization.
Compliance management deals with conforming with stated requirements. It is achieved through management processes which identify the applicable requirements (defined, for example, in laws, regulations, contracts, strategies and policies), assess the state of compliance, assess the risks and potential costs of non-compliance against the projected expenses to achieve compliance, and, then, prioritize and initiate any corrective actions that are necessary.
