Organisation – the key to minimising compliance risks

The field of compliance is continuing to grow in iGaming, in response to the ever evolving complexities of gaming regulations. It can be difficult to stay organized without a proper system in place to protect the business.

We share insights on how to minimise compliance risks, through tight organisation.

The 6 P’s of compliance

Preparation, Preparation, Preparation, Process, Policy and Procedure – Being prepared is everything, keep an archive or library, to hold records of anything related to processes policies or procedures.

The three lines of defense model

Use the thee lines of defense model in your compliance protocols, in order to demonstrate satisfactory compliance to auditors.

What is the three lines of defense model?

First line: Primary responsibility for managing organisational risks through designing and implementing appropriate mitigating controls rests with operational management who own and manage risks.

Second line: Reporting to senior management, the second line comprises risk management and compliance functions to help build and/or monitor the first line of defence controls.

Risk management functions are designed to facilitate and monitor the implementation of effective risk management practices by management throughout the organisation, assisting risk owners in defining target risk exposure and providing adequate risk reporting.  The principal purpose of compliance functions is to monitor compliance with applicable laws and regulations.  It is common for multiple compliance teams to operate within an organisation, with responsibility in areas such as health & safety, human resources, legal, supply chain, environmental or quality.

Third line: The principal function of the third line is to provide risk assurance. Internal audit provides assurance on the effectiveness of governance, risk management and internal controls, including first and second line controls. Internal audit is independent of management with a direct reporting line to the Governing body/ Audit Committee.

Hold Mock audits

Run fake audits to keep your team on their toes, and to stress test your compliance framework. Mock audits should be built into your existing 3 lines of defence model.