1.4 What are the behaviours and drivers of the risk?

  • Identify the compliance behaviours or symptoms that the participants are displaying.
  • The driver of that behaviour is the cause of the risk.
  • Participant behaviours can be observed through the basic compliance obligations - correctly registering in the system, lodging on time, reporting correct information and paying tax obligations on time.
  • Determine how the risk manifests in regard to these compliance obligations and community confidence.
  • Use the compliance model, in particular the BISEP (business, industry, sociological, economic and psychological) factors to understand and determine what is driving the participants' compliance behaviour; that is, to determine why the participants in the risk behave as they do.
  • This step helps to identify leverage points so that the drivers of the risk are treated rather than the behaviours.
  • Use these leverage points to determine the right mix of compliance strategies.
  • Go back and ensure the risk adequately reflects the behaviours and drivers you have identified and that it is concise and not open to interpretation.

FIGURE 2: Compliance model

Diagram of the Compliance model


After working through this phase, you should go back to the start and revisit each of the questions and refine your answers if necessary.

End of attention
Last modified: 19 Jan 2015QC 21200