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Communicating Compliance Risk In Business Terms

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Question: 
How can I communicate compliance risk in terms that the business can understand and use to make immediate, measurable cost versus benefit risk decisions?
Answer: 

The key is to communicate your compliance posture in a standard, quantifiable, non-finite method that allows the business user to easily compare the inherent business risk of non-compliance with the relative capability of meeting the compliance requirements. Simply presenting compliance risk in terms of finite (e.g. red, yellow, green) indicators does not give the business user the necessary tools or “intelligence” to be able to take action in managing the risk of compliance from a cost versus benefit standpoint. Delivering compliance risk in these terms requires an easy to understand method for calculating and reporting risk that can be baked into current business processes similar to how a credit report and score are used in a loan underwriting process.

First published on BankersOnline.com 4/27/09

First published on 04/27/2009

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