Commercial Cannabis Insights
Compliance and risk management are two distinct functions that should be unified by one risk management strategy. A risk-based approach is a common risk management strategy in highly-regulated industries that optimally facilitates compliance while also mitigating other risks. A properly implemented risk-based approach creates a broader level of protection for the business, employees, and investors from reputational, administrative, civil, and criminal penalties.
In what appears to be the first penalty levied against a financial institution banking commercial cannabis businesses, Live Life Federal Credit Union has entered into an administrative order with the National Credit Union Administration (NCUA) for failures related to its cannabis banking program. As Live Life Federal Credit Union emerges from this administrative order, and more lessons are learned, cannabis bankers will be more empowered to make the appropriate risk-based decisions when it comes to managing their MRB portfolios.
In highly regulated industries like cannabis, it is important to demonstrate your ability to manage the identified risks as they change over time. Take two investment options that are similar in every way except risk management: an investor would choose the company that can distinctly demonstrate their ability to manage their risks into the future. An investor values risk management because it increases confidence in realizing the future revenue stream.
Risk and compliance professionals know that operating a highly regulated business is difficult. But in the cannabis industry it is exceedingly difficult because of jurisdictional variances and rapidly changing regulations.
Implementing a risk profile does not have to be overly complicated. Risk professionals who know how to communicate their company’s risk profile in a clear, concise manner can best help their senior managers and board of directors make the best risk-based decisions to move their business forward safely.
For commercial cannabis businesses to succeed, risk management should be incorporated into every employee’s job. This helps every cannabis operator reduce public harm, increase public safety, and maintain a sound licensed cannabis market that is profitable to operate in. Risk management isn’t built in a day, but the sooner you start, the sooner everyone gets to do their job.
Maintaining compliance in the commercial cannabis industry can be daunting, considering how highly regulated the industry is and how quickly rules change. A compliance risk assessment will help your commercial cannabis business focus resources on the regulatory risks that matter most to your business.
Cannabis banking requires a benchmark for cannabis operators growing cannabis so that the yield from a grow can be monitored for reasonableness. This allows cannabis bankers to reasonably predict transaction patterns to determine the risk of money laundering and inversion/diversion to the illicit cannabis market.
Building a strong culture of compliance is essential to most businesses, but especially important to cannabis operators managing a rapidly changing regulatory landscape with increasing regulatory expectations.
Jontae James, CEO of NatureTrak, will provide a view for both the cannabis business and the ancillary cannabis business on how to accomplish the transparency necessary for both sides to prosper with risk-based due diligence. In this episode, Jontae provides an example of diversion of cannabis product and inversion of funds in a hypothetical grow scenario, and describes where specific points in the track and trace system are more vulnerable to those looking to divert and invert cannabis product.
Jontae James, CEO of NatureTrak, will provide a view for both the cannabis business and the ancillary cannabis business on how to accomplish the transparency necessary for both sides to prosper with risk-based due diligence. In this episode, Jontae explains what information a commercial cannabis business could provide to help the vendor or ancillary cannabis business meet their regulatory expectations.
Jontae James, CEO of NatureTrak, will provide a view for both the cannabis business and the ancillary cannabis business on how to accomplish the transparency necessary for both sides to prosper with risk-based due diligence. In this episode, Jontae introduces key information to evaluate, like how much the commercial cannabis business expects to produce/sell, where the cannabis product is going, and who they do business with.
Jontae James, CEO of NatureTrak, will provide a view for both the cannabis business and the ancillary cannabis business on how to accomplish the transparency necessary for both sides to prosper with risk-based due diligence. In this episode, Jontae explains how access to track and trace data and formal policies and procedures help paint the picture of a well-organized business.
In North America, it is commonly reported that the illicit cannabis market represents nearly seventy percent of all cannabis transactions. Given this substantial market share, it is necessary to recognize that the illicit cannabis market is more common than the licensed cannabis market.
As the commercial cannabis industry becomes more entwined in the economy, it is of utmost importance to defend the business against bad actors.
The transfer of cannabis products into and out of the licensed sector creates great risk for the cannabis business by jeopardizing their active license and risking substantial fines or license revocation by the regulatory authorities.
“Banking a commercial cannabis business is no more dangerous than banking a liquor store.” Head of Compliance ...
Learn how and why ACCCE was created from the President, Brion Nazzaro.
ACCCE VP, Membership, Lisa Freeman walks through the importance of a risk assessment for CCBs.
An interview with the former manager of the Data Analysis Unit of the Department of Revenue Marijuana Enforcement division, and the story of how a commercial cannabis company faced criminal charges for trying to circumvent the law.
Join ACCCE VP, Membership, Lisa Freeman, and learn how risk issues can affect your business.