What is the difference between risk management and legal compliance?
Volunteering Australia’s Running the Risk publication states: In working out what risks it faces, your organisation will probably identify the risk of incurring a penalty for breaking a law (for example, a fine for not filing its annual audited financial report with a government agency). This type of risk should be dealt with by a legal compliance plan rather than a risk management plan. This is because the law requires us to comply actively with (obey) legislative provisions, regardless of cost. Risk management – making a plan about how your organisation will manage the risk of failing to comply and being discovered in non-compliance, and/or how you will fund the fine – isn’t an option. Compliance with Legislation What legislation do I need to know about? A number of pieces of legislation impact on non-profit organizations. The legislation should be taken into account when developing organizational policies, procedures, strategies and actions to ensure compliance and safety. Some exam
