If there is a detection of serious wrongdoing, what is the first step for the compliance professional?

The first step for a compliance professional upon detecting serious wrongdoing is to contact legal counsel for a risk assessment. This step is crucial because legal counsel can provide guidance on the legal implications of the wrongdoing uncovered and help the compliance officer understand the scope of the issues at hand. Engaging legal experts at this early stage ensures that any subsequent actions taken, whether it be an internal investigation or notifying relevant authorities, are legally sound and protected under legal privileges.

By consulting with legal counsel, the compliance professional can also better assess the potential risks associated with the wrongdoing, including the need for reporting to regulatory bodies, the protection of whistleblowers, and how to manage communication with stakeholders. This foundational step helps establish a clear path forward, ensuring compliance with legal obligations and protecting the organization from further liabilities.

Other options might involve steps that come later in the process, such as conducting investigations or reporting to the board, which should ideally follow the legal counsel's advice.