A compliance review is a process of ensuring that an organisation is complying with all its regulatory requirements and applying best practice in governance principles.
The regulatory requirements can vary from organisation to organisation. There may also be contractual obligations in respect of grants.
A compliance review can be particularly useful when there is a significant change in the make-up of the board or committee, or there is a change in key personnel, whether employed or volunteer. This should leave the committee with a little more peace of mind following the change.
Risk Management
Risk management is the process of identifying, assessing and controlling threats to an organisation’s resources and its ability to achieve its strategic purposes. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.
It is good governance practice that risk management is considered at every committee meeting and when any major decision is made by the committee.
Are the systems of the organisation sufficiently robust to withstand risks and threats? Another consideration is the adequacy of insurance and weighing the premium costs against the significance of the risk.