When a company is facing issues dealing with corporate compliance, implementing a system to deal with the compliance and corporate governance issues is the best opportunity for the company. The company should develop a process to analyze alternatives and integrate the appropriate opportunity into the company's system. The company will begin by developing an internal control and corporate governance system. This process includes defining and implementing compliance steps and process. Next, the company will recommend a preventative solution that incorporates risk mitigation. This part of the process includes using systems and organizations for compliance techniques. Finally, the company will use a problem solving approach to determine which solutions to implement into the compliance effort. The company will begin to implement its enterprise risk management system by developing an appropriate internal control and corporate governance system.
Develop Internal Control and Corporate Governance SystemFor a company to ensure complete corporate compliance, it is imperative that there is a developed internal control and corporate governance system.
To develop a functioning internal control and corporate governance system, strategic planning and development are required. This strategic planning includes developing preventive, detective, and corrective controls to cover the aspects of the corporate compliance.
The initial step a company must take while developing an internal control and corporate governance system is developing preventive controls to avert a possible compliance violation. Preventive controls include developing guidelines and responsibilities to conduct reviews of ethics policies, conflict-of-interest procedures, and updates in corporate compliance procedures that will protect and position the company to prevent a possible compliance violation. An associate of the company's preventative control measures include comparing the organization's current conflict-of-interest policy with industry regulations regularly, reviewing recent government filings, and evaluating the company's current compliance program. If these control steps are proactively taken regularly in the organization, the company...