ADCOCloud | Adherence Complicance Cloud

Cannabis Risk Management

What is Cannabis Risk Management?

Cannabis risk management is an effective and efficient means for cannabis organizations to gather important risk data, validate compliance, and report results to management. Often, risk management capabilities are internal and implemented in silos within the cannabis business (e.g., inventory, packaging, quality assurance, sales, financials & taxation, etc.). Most internal programs fail to integrate and automate the gathering of data, risk assessment reports, and most importantly, scoring. 

Cannabis Risk Assessment Report

 

Below we explore the cannabis risk management landscape, including the following topics:

Cannabis Risk Assessment

 

Cannabis Risk Management 

There can be wide-ranging definitions of cannabis risk management among industry experts; however, cannabis risk management encompasses activities such as company compliance with applicable laws and regulations, enterprise risk management applications and corporate governance. Effective cannabis risk management relies on using data, information, and evidence to develop risk strategies and make compliance decisions. 

 

An effective cannabis risk management framework enables cannabis businesses to integrate and coordinate risk and compliance initiatives with business processes. Our framework provides a comprehensive view of business risk and enables management to reduce risks effectively. By making informed decisions, based on assessment data, cannabis executives and stakeholders can better achieve compliance and reduce cannabis business risk.

 

Cannabis stakeholders supported by cannabis risk management:

  • Executives - Founder/Owner, C-level, Legal & Directors

  • Management - Operations, Finance, HR & Employees

  • Regulatory - Federal, State & Local Agencies

  • Financial - Banks / Credit Unions & Payment Processors

Current Cannabis Risk Management Trends

Many cannabis businesses have established a compliance manager, or director, to lead risk management and compliance initiatives. The “one-person” solution across multiple departments often fails, as compliance initiatives become uncoordinated, leading to inefficiency, duplication of efforts and confusion. Fragmented cannabis risk management wastes employee time and company resources. The current state of risk management in the cannabis industry reveals:

  • Complex and fragmented

  • Lack of visibility for business functions

  • Lack of effective program oversight

  • Using spreadsheets OR expensive, poorly designed compliance software

Evolving from cannabis compliance to integrated risk management and scoring is key.

 
 

Importance of Risk Assessment Scores

Risk assessments are lacking in the cannabis industry. Assessments can help identify and manage risk by collecting information on existing and emerging risks, and the accuracy and effectiveness of controls. Assessments can determine if the compliance team is doing its job. Scoring can determine the success of the team.

If you cannot measure it, you cannot quantify it. To accurately gauge your risk exposure, all relevant requirements must be codified, categorized, and prioritized. The ADCOCloud risk assessment scoring algorithm helps dictate cannabis risk strategy for inventory, operations management, financials and regulatory success.

Risk

Assessment

Score

 

100-90

 

 

89-80

 

 

79-lower

Violation

Risk

Low

 

Medium-to-High

Immediate

Cannabis

Risk 
Strategy

Continuous improvement

Re-validate

processes

Re-implement program

 

Return on Investment (ROI) Review

Return on investment (ROI) review of internal compliance programs can be exceedingly difficult; however, our automated cannabis risk management applications ensure a positive ROI from the start. 

Our integrated cannabis risk management program reduces costs, duplication of activities, negative impacts on operations and provides a greater ability to build repeatable risk management processes.

ADCOCloud

Benefit

Less time on gathering, assembling, and reporting on risk assessments

Reducing

compliance risks

Moving from "silo" to integrated risk management

Investment

Benefit

Increased

Efficiency

 

 

Cost

Reduction

Increased Performance

Estimated Program ROI

300%

 

 

200%

 

150%

Summary

As the cannabis industry faces a rapidly changing regulatory environment and increasing complexity, organizations must focus on a structured approach for managing cannabis risk management. More time must be spent on risk analysis and problem-solving, with less time spent on data collection, spreadsheets, or expensive compliance applications.

Leverage the benefits of automated cannabis risk management applications while working with trained and experienced consultants. Your program must reduce overall risk and protect your organization. Interested in learning more? Contact Us.

 

Click the icon below for your Industry:

Cannabis Licensed Operators

Licensed Operators

  • Automated cannabis compliance risk management assessments and programs for all licensed types.

  • Reduce the risk of regulatory fines & violations caused by non-compliance.

Cannabis Banking Services

Cannabis Banking

  • We help our financial partners eliminate blind spots, gaps and regulatory risks.

  • Training, inventory & audit reports, risk assessments, compliance framework & program management.

Regulatory Agencies

  • Automated cannabis monitoring programs

  • Training, inventory & tax audit reports, facility & operations inspection app, statistics & analytics and more