Why is regulatory compliance important in risk management?
Regulatory compliance ensures that organizations operate within the law and avoid legal penalties, while also promoting ethical practices.
Which of the following is an example of a regulatory body in risk management?
The U.S. Securities and Exchange Commission (SEC) is a key regulatory body overseeing financial markets and ensuring compliance.
How do ethical standards impact risk management practices?
Ethical standards ensure that risk management practices are conducted with integrity, fairness, and respect for stakeholders.
What is the role of audits in regulatory compliance?
Audits help ensure that organizations are complying with relevant regulations, identifying any potential non-compliance issues.
Why is it important to maintain documentation of risk management processes?
Documentation provides a record of compliance, helps with future audits, and demonstrates due diligence in managing risks.
What is the role of risk management in corporate governance?
Risk management is a key component of corporate governance, ensuring that the organization identifies, assesses, and mitigates risks effectively.
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What is a common consequence of failing to comply with regulations in risk management?
Failure to comply with regulations can result in fines, legal penalties, and damage to an organization's reputation.
What should organizations do to ensure ongoing regulatory compliance?
Organizations should conduct regular reviews, audits, and training to stay up-to-date with regulatory changes and ensure compliance.
How can ethical considerations impact risk management decisions?
Ethical considerations ensure that risk management decisions are made with integrity, fairness, and respect for all parties involved.