Who typically manages risk and compliance within an organization?

The management of risk and compliance within an organization is primarily the responsibility of risk managers. These professionals are specifically trained to identify, analyze, and mitigate risks that could potentially hinder the achievement of the organization's objectives. Risk managers develop strategies to address various types of risks, including operational, financial, reputational, and compliance risks. Their role encompasses creating and implementing risk management policies, monitoring regulatory changes, and ensuring that the organization adheres to necessary legal and compliance standards.

While other roles such as insurance brokers, corporate executives, and legal advisors can play important parts in the overall risk and compliance framework, they do not typically hold the primary responsibility for managing these risks. Insurance brokers can assist in transferring risk through insurance, corporate executives provide leadership and strategic direction, and legal advisors ensure that the organization complies with laws and regulations. However, risk managers are the designated experts focused specifically on risk assessment and management.