Compliance and risk management are necessary for any business, but especially those in legal cannabis industry, because they help ensure that the business is operating within the law and minimizing potential legal and financial risks.
The gray area of legal cannabis requires a focused and dedicated team to monitor the sea of regulations and their constant changes as new states become legal, medical states add recreational use and states evolve as they learn more about consumers use of legal cannabis.
In the cannabis industry, compliance is particularly important because the laws and regulations surrounding the cultivation, distribution, and sale of cannabis vary widely from state to state and can be complex and constantly changing. Failure to comply with these laws and regulations can result in fines, legal action, and damage to the company’s reputation. Risk management is important because it helps businesses identify and assess potential risks and implement strategies to mitigate or prevent those risks. By engaging in compliance and risk management practices, cannabis businesses can protect themselves and their customers, and establish themselves as responsible and trustworthy members of the community.
A compliance consultant can help a legal cannabis business navigate the complex and constantly changing landscape of laws and regulations in the cannabis industry. Some specific ways that a compliance consultant can assist a cannabis business include:
- Staying up to date on changes to laws and regulations at the state and federal level and advising the business on how to comply with them.
- Developing and implementing compliance policies and procedures for the business.
- Conducting risk assessments to identify potential compliance issues and develop strategies to mitigate them.
- Providing training to employees on compliance matters.
- Assisting with the development and submission of required reports and applications, such as those related to licensing and permitting.
- Conducting audits to ensure that the business is in compliance with relevant laws and regulations.
Overall, 1620 Partners can help cannabis businesses ensure that it is operating in a responsible and legal manner, which can protect the business from fines, legal action, and damage to its reputation.
Here are some skill sets that you may want to consider when looking for a compliance/risk management consultant:
- Boots on the ground knowledge: Consultants that have pre-existing relationships with the inspectors and with the Commissioners. Boots on the ground Consultants like 1620, gain institutional knowledge and know how to manuever through the gray areas to maintain compliance with the regulations.
- Strong knowledge of relevant laws and regulations: The consultant should have a thorough understanding of the laws and regulations that apply to your business and industry. This may include federal and state laws, as well as industry-specific regulations.
- Experience in risk assessment: The consultant should have the ability to identify potential risks to the business and develop strategies to mitigate or prevent them.
- Strong communication skills: The consultant should be able to explain complex legal concepts in a clear and concise manner, and be able to communicate effectively with a variety of stakeholders, including employees, management, and regulators.
- Attention to detail: Compliance work requires careful attention to detail, as even small mistakes can have significant consequences. The consultant should have a strong attention to detail and be able to complete tasks accurately and thoroughly.
- Organizational skills: The consultant should be able to manage multiple tasks and priorities effectively and efficiently.
- Ability to adapt to change: The laws and regulations surrounding the cannabis industry can be complex and constantly changing, so the consultant should be able to adapt to these changes and help the business stay in compliance.
- Professionalism: The consultant should be professional and reliable, and should conduct themselves in a manner that reflects positively on the business.
Risk management in cannabis businesses refers to the process of identifying, assessing, and prioritizing potential risks and hazards that may impact the business. This can include risks related to compliance with laws and regulations, quality and safety of products, financial stability, and other factors that could affect the business’s ability to operate effectively.
Some specific risks that cannabis businesses may need to consider and manage include:
- Legal and regulatory risks: Cannabis is still a federally illegal substance in many countries, and businesses operating in the industry may face legal and regulatory challenges. This can include risks related to obtaining and maintaining licenses and permits, compliance with advertising and labeling requirements, and potential legal penalties for non-compliance.
- Quality and safety risks: Cannabis businesses must ensure that their products are safe for consumers and meet quality standards. This can include risks related to contamination, incorrect labeling, and inaccurate dosage.
- Financial risks: Like any business, cannabis businesses face financial risks such as cash flow issues, changes in demand for products, and competition from other businesses.
- Reputational risks: Negative media coverage or customer complaints can damage a cannabis business’s reputation, which can impact its ability to attract and retain customers.
To manage these risks, cannabis businesses can implement a risk management plan that includes strategies such as training employees on compliance and safety protocols, implementing robust quality control processes, and maintaining proper insurance coverage. It can also be helpful for businesses to establish strong relationships with legal and financial advisors who can provide guidance on navigating the industry’s unique risks and challenges.
1620 Partners has assisted groups to ensure they do not receive Notices of Deficiences, multiple Requests for Information, packaging and labeling assistance, marketing and advertising assistance and has assisted Clients through Cease and Desist orders, and Summary Suspension Orders.
What is the intersection of OSHA and legal cannabis businesses?
The Occupational Safety and Health Administration (OSHA) is a federal agency responsible for ensuring safe and healthy working conditions for employees in the United States. OSHA sets and enforces safety and health standards for various industries, including the cannabis industry.
In states where cannabis is legal for medical or recreational use, cannabis businesses have a responsibility to provide a safe and healthy workplace for their employees, just like any other business. This includes complying with OSHA standards and regulations, such as those related to hazard communication, personal protective equipment, and first aid.
Cannabis businesses may also be subject to state and local occupational safety and health regulations in addition to federal OSHA standards. It is important for cannabis businesses to be aware of and comply with all applicable safety and health regulations to avoid potential fines and other penalties.
OSHA provides resources and guidance specifically for the cannabis industry, including information on safety and health hazards specific to the industry, such as the potential for exposure to chemical pesticides and solvents used in the cultivation and processing of cannabis. It is important for cannabis businesses to familiarize themselves with these resources and take steps to protect the health and safety of their employees.
1620 Partners offers OSHA Audits to ensure you are OSHA safe and are meeting standards and regulations.
WHY CHOOSE US
Combined years in business
The founding team operated in various companies and has over two decades of combined expertise.
We have repeat clients who trust us as their compliance partners, including compliance managers.
Audits, Safety, Inspections, Investigations, SOP development, special permits are some of the projects we take on.
Don’t just take their word for it reach out today and let us help you navigate the compliance landscape.