Step 1: Identify Regulatory Requirements – Review applicable laws, industry standards, and compliance obligations. Determine which areas pose risks if not adhered to, including financial, operational, and reporting requirements.
Step 2: Implement Compliance Controls – Develop policies, procedures, and internal controls to address identified regulatory risks. Ensure employees are trained on requirements and procedures.
Step 3: Monitor Compliance and Report – Conduct audits, track compliance metrics, and address gaps promptly. Maintain documentation and reporting systems to demonstrate adherence to regulators.
Conclusion: ERM supports regulatory compliance by systematically identifying and mitigating risks. Understanding requirements, implementing controls, and monitoring compliance ensures organizations meet legal and industry standards.