Risks

Overview

In Regology, Risks represent the regulatory hazards tied to non-compliance with regulations. These may include penalties, economic impacts, loss of licenses, and other significant consequences. Risks can be associated with Authoritative Documents or created independently.

Types of Regulatory Compliance Risks

1. Legal & Regulatory Risk

• Failure to comply with laws, regulations, or industry standards.

• Changes in regulations that require adjustments to policies or operations.

• Risk of lawsuits, penalties, or sanctions from regulatory bodies.

2. Operational Risk

• Inefficiencies or failures in compliance processes.

• Errors in reporting, documentation, or record-keeping.

• Lack of internal controls leading to breaches or non-compliance.

3. Financial Risk

• Fines, penalties, or settlements due to non-compliance.

• Loss of revenue due to legal restrictions or regulatory changes.

• Increased costs for implementing new compliance measures.

4. Reputational Risk

• Damage to brand image due to non-compliance issues.

• Loss of customer trust or investor confidence.

• Negative media attention affecting market position.

5. Cybersecurity & Data Privacy Risk

• Failure to comply with data protection laws (e.g., GDPR, CCPA).

• Breaches or leaks of sensitive customer or company data.

• Fines or legal action due to data mismanagement.

6. Third-Party & Vendor Risk

• Compliance failures by vendors or third parties affecting the organization.

• Lack of due diligence in onboarding or monitoring suppliers.

• Risks from outsourcing compliance functions to external firms.

7. Ethical & Conduct Risk

• Violations of corporate ethics policies or codes of conduct.

• Corruption, bribery, or fraud-related compliance breaches.

• Non-compliance with anti-money laundering (AML) or anti-bribery regulations.

8. Strategic & Business Risk

• Regulatory changes impacting business models or market expansion.

• Compliance costs reducing competitiveness in the industry.

• Failure to anticipate and adapt to regulatory trends.

9. Environmental, Social, & Governance (ESG) Risk

• Non-compliance with environmental regulations (e.g., carbon emissions limits).

• Failing to meet corporate social responsibility (CSR) obligations.

• Governance failures affecting investor confidence.

Mitigating these risks involves setting up Controls that ensure adherence to regulations.

Navigating to Risks

1. Locate the Compliance Management section in the left-side navigation bar.

2. Click Risks to access the page.