Compliance risk is the potential that you will be deemed to have violated a law or regulation. Regulatory risk is the potential that changes to laws, regulations or interpretations will cause you losses.
The DifferenceCompliance risk results from inadequate controls or issues related to training, due diligence and human error. Compliance capabilities, processes, practices and training can be a significant challenge and cost in many industries. Regulatory risk is the potential for new laws to cause compliance costs or cause disruptions to your business. In some cases, a new regulation can invalidate a firm's entire business model.
Next: Regulatory Risk
The potential that you will be deemed to have violated a law or regulation.
The potential that a new law, regulation or interpretation will cause you losses.
A lapse in your financial controls causes you to misreport your financial results to investors.
A new law makes your marketing practices illegal.
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