What is the goal of compliance risk assessment?

The goal of compliance risk assessment is to evaluate the organization's adherence to laws and regulations. This involves identifying and mitigating risks related to failing to comply with legal standards and industry regulations. By conducting a compliance risk assessment, an organization can ensure that its practices align with statutory requirements, which is crucial for avoiding legal penalties, reputational damage, and operational disruptions. Such assessments help in forming effective strategies and controls that safeguard the organization against compliance breaches, create an ethical workplace culture, and reinforce accountability. This evaluative process is key in maintaining regulatory compliance and ensuring that the organization operates within the legal frameworks applicable to its industry.