Compliance Risk Assessments: 5 Essential Steps For Success
hyperproof, Monday, November 13,2023
Compliance programs must be customized to the needs and challenges facing each company and be comprehensive enough to deal with all of the risks the company has identified.
The presence of an effective compliance program could mean more leniency from regulators in the event of a corporate misconduct investigation. In fact, in April 2019 and again in March 2023, the U.S. Department of Justice Criminal Division updated its guidance document for prosecutors on how to evaluate corporate compliance programs in the context of conducting corporate investigations. DOJ guidance states that prosecutors should consider whether the compliance program is appropriately 'designed to detect the particular types of misconduct most likely to occur in a particular corporation's line of business' and 'complex regulatory environment.'
An effective risk assessment should begin with a detailed picture of the compliance landscape your company operates in. The two questions to answer are 1) where are you doing business, and 2) what regulations cover businesses like yours?