The implementation of a CRMF offers many benefits, including:
- More efficient operations
- A strong bottom line
- Brand reputation
- Accountability
Integrating risk management within the commercial cannabis business’s day-to-day activities with a top-down commitment creates an environment that:
- Improves business continuity
- Increases firm valuation
- Reduces the frequency and impact of risk events
For the CRMF to be effective, it must be formal, risk-based, and performed using consistent and standard policies and procedures, referred to as the risk program. For commercial cannabis businesses, the key components of the CRMF include:
- Internal control environment
- Risk assessment
- Control activities
- Information and communication
- Training
- Assurance
The risk program is an ongoing and critical function of the commercial cannabis business. Regular updates should be performed to ensure effective risk management that increases public safety and reduces public harm. Implementing and appropriately maturing the risk program assures stakeholders that management can effectively operate the business through the taking of appropriate risks to achieve business objectives.
Ready to implement your risk program?
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