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Saying what you will do and doing what you say is essential for organizations where staying between the lines is critical to mission success. If you want to lower your risks you need to foster a culture of integrity across all levels of your organization. For compliance, integrity is manifested when organizations take ownership of all their obligations and hold themselves accountable to them. In order to say what you will do requires that you first know what your obligations are. This means taking inventory of both regulatory requirements and voluntary commitments. Companies must then set appropriate organizational outcomes, targets, and goals commensurate with their level of commitment and operational risk. The way that companies say what they will do is by documenting their promises usually in the form of policy. To be effective policies must be put into practice. This is demonstrated when organizations operationalize their promises by embedding compliance objectives into programs, systems, processes, and procedures. You can call this compliance-by-design but it is really just ensuring that you do what you say. This is still not is not enough. Organizations must also hold themselves accountable. In fact, they must regulate themselves to provide assurance that they meet their obligations today and will meet them in future. Sustainability is the goal and integrity is the means. This involves continually evaluating performance and effectiveness of risk & compliance programs. Culture is a remnant of our actions. Organizations that continually say what they will do and do what they say will build and strengthen a culture of integrity.

When life is uncertain things are unclear, you don’t know what to expect, and you react to things when Life under uncertainty is a slow process. Compliance under uncertainty is also a slow process. So how does one make progress and move faster? approaches fail to address the root cause which is the lack of knowledge or what is called epistemic uncertainty If one wants to make progress it is important to contend with this uncertainty.

The causality model chosen to describe a system often leads to specific methods and tools to address uncertainty

Every business operates in the presence of uncertainty. This uncertainty creates the opportunity for risk.

As beneficial as that might be it does not capture the full nature of uncertainty. associated with the word risk, "Risk Management" is getting in the way of effectively contending with uncertainty Change Operationally, compliance at its core is the practice of meeting obligations in the presence of uncertainty means meeting all your obligations (conformance, performance, and outcome-based) in the presence of uncertainty To reflect the shift to improve the certainty of meeting obligations we have elected to call these certainty

But here's what we miss: uncertainty creates the opportunity for risk . They're all manifestations of uncertainty. But you can't eliminate risk when uncertainty keeps creating new ones. ) —they map the uncertainties creating those opportunities. the ones still swatting at symptoms – the effects of uncertainty.

In cases of greater uncertainty these models will be adjusted over time as more information is gathered Risk Risk is defined (ISO 31000, COSO) as the effects of uncertainty on objectives which involves having However, everything happens in the presence of uncertainty so it is important to properly identify uncertainty There are two primary forms of uncertainty: Epistemic uncertainty; lack of knowledge or know how; this Reducible risk is treated by buying down uncertainty to improve the probability of meeting each objective

All the waste that LEAN seeks to eliminate is caused by the same thing: uncertainty, and this uncertainty Here are a few examples of how this happens: We create defects because of uncertainty associated with than necessary because of logistics uncertainty. We move more than necessary because of uncertainty associated with work procedures and standards. If you want to eliminate waste, eliminate uncertainty first.

For purposeful and goal-oriented organizations, sources of uncertainty can often be found with respect Uncertainty of the goals and objectives Companies use roadmaps to take them from where they are now Uncertainty of any of the elements of the roadmap will impact mission success which include: Uncertainty they are now Uncertainty with their prediction of the future Not addressing these uncertainties may Processes may be defined but tend not to be effective (ordered uncertainty).

Managing operational uncertainty helps organizations stay within boundaries, protecting the value chain Integrated Balanced Scorecard Protecting value creation fundamentally means contending with two types of uncertainty Aleatory uncertainty (irreducible randomness) is handled by applying margins to cover unavoidable losses Epistemic uncertainty (reducible through knowledge) is managed through compliance controls and measures Greater uncertainty and risk characterize incubation and startup activities, which may require different

medical device, chemical processing, high-tech, government, and others is that the ability to address uncertainty The ability to handle uncertainty is designed, maintained, and improved throughout the expected life For all companies that contend with uncertainty risk planning and implementation is not optional. Without adequate preparation it is not possible to effectively prevent or recover from the effects of uncertainty What is effective is handling uncertainty by design.

Lean Compliance - A Lamppost in an Uncertain World In life and in business, you will face struggles. Lean Compliance exists because compliance remains predominantly reactive, siloed, and uncertain. light toward a better way to approach compliance—compliance defined by proactivity, integration, and certainty