Corporate Compliance ReportBusiness start-ups as well as businesses struggling with compliance issues need a method of managing governance. The method for dealing with corporate governance and compliance issues is to implement an enterprise risk management (ERM) system. The system must examine alternatives and incorporate appropriate processes that fit into the business structure. The development of internal control and corporate governance procedures forms the basis of such a system. Developing these procedures includes identifying and practicing compliance steps and processes. The company must implement preventive internal controls incorporating risk mitigation. This segment of the process includes the use of benchmarking systems and organizations for compliance techniques. Finally, the company will have to determine the techniques to implement in its compliance process. The company will begin to implement its enterprise risk management system by developing an appropriate internal control and corporate governance system. Significant strategic planning is required when developing a functional system of internal control and corporate governance. This strategic planning includes the development of preventive, detective and corrective controls to cover aspects of business compliance. The first step or control procedure that a company must undertake when developing a governance system is to develop preventive controls to avoid a possible compliance violation. Preventive controls include developing guidelines and responsibilities for conducting reviews of ethics policies, conflict of interest procedures, and updates to company compliance procedures that will protect and position the company to prevent a possible compliance violation. Company preventive control measures include regularly comparing the organization's current conflict of interest policy with industry regulations, reviewing recent government filings, and evaluating the compliance program. current status of the company. If these control measures are regularly taken proactively within the organization, the company will have taken preventative measures to avoid a possible future compliance violation (Maltz, November/December 2003). The second step or screening procedure that a company should follow to promote corporate compliance is a detective check. Detective controls will allow the company to detect whether a possible compliance violation has occurred or is likely to occur. The company will assign responsibility for taking detective control measures with respect to compliance regulations to an associate or group of associates. Detective monitoring responsibilities include promptly reporting and objectively addressing any compliance violations, ensuring a prescribed observation program is in place to ensure the organization adheres to its code of ethics and regulations compliance, and the formal review and alignment of company compliances with government regulatory compliances..