Riordan is a corporation with officers and directors as fiduciaries acting in the best interest of the company and subject to a standard of corporate behavior under where it's understood that officers and directors can make mistakes, but need to show their decisions were made carefully. Recent prosecutions have demonstrated an increased effort to hold corporate officers criminally responsible for acts of the corporation. Regulatory and tax compliance are a part of Riordan's overall governance that is evolving and changing as business expands into foreign jurisdictions. Online and web based sales present compliance challenges that need to be reviewed. Riordan needs to implement a revised compliance strategy to reduce corporate liability and risk for all our director's and officer's.
Enterprise risk management (ERM) is an important discipline that is gaining popularity and recognition, both as a governance best practice and as just good management. More often risk executives in related roles are getting involved or are being assigned the challenging task to implement ERM.
When facing the issue of corporate compliance, developing a system to deal with compliance and corporate governance is recommended. The system should analyze alternatives and integrate them. Beginning with internal control and governance, a process of defining compliance steps and preventive solutions will help mitigate risk. This system is needed to ensure complete compliance. To develop preventive, detective, and corrective measures, strategic planning and development are necessary. Prevention controls in place will reduce possible compliance violations. This will entail conducting reviews of all ethics policies and any conflict of interest procedures currently in place. Comparison of industry regulations and familiarity with recent updates and the latest filings from the government are a cumbersome but necessary procedure.Taking a proactive compliance review stance will position Riordan to avoid future violations through aggressive prevention.