Description
Policy Exception Management refers to the systematic approach organizations use to handle instances where business units or individuals cannot comply with existing policies. In the GRC industry, managing these exceptions is critical for maintaining regulatory compliance and mitigating risks. Organizations often face unique challenges that may require them to deviate from standard policies, whether due to operational needs, evolving regulations, or unforeseen circumstances. A robust exception management process ensures that such deviations are documented, assessed for risk, and approved by relevant stakeholders. This process typically includes identifying the exception, evaluating its impact, obtaining necessary approvals, and implementing compensatory controls where needed. By effectively managing policy exceptions, organizations can uphold their compliance posture while also being agile enough to respond to changing business environments. This balance is essential for maintaining stakeholder trust and ensuring that the organization does not expose itself to unnecessary risks.
Examples
- A financial institution may need to bypass certain KYC (Know Your Customer) protocols for a high-value client due to urgent transaction needs, documenting the rationale and obtaining approval from compliance officers.
- A healthcare provider might establish a temporary exception to data privacy policies during a public health crisis, allowing for quicker data sharing among agencies while implementing additional safeguards.
Additional Information
- Effective policy exception management helps organizations remain compliant with laws and regulations while allowing flexibility in operations.
- Utilizing software tools can streamline the exception management process, ensuring all deviations are tracked, monitored, and reviewed regularly.