Clear lines of communication and authority help to avoid conflicts of interest. Compliance-risk management can be more difficult for management to integrate into an organization's regular business processes because it often reflects mandates set out by legislation or regulation that the organization itself does not view as key to its success.
For example, bankers understand how vital credit-risk management and interest-rate risk management are to their organizations, because they reduce the volatility of earnings and limit losses. However, regulations enacted for broader societal purposes can be viewed as an expensive mandate.