True or False: A compliance program that never identifies problems is considered to be effective.

A compliance program that never identifies problems cannot be deemed effective because the core purpose of such a program is to prevent, detect, and address compliance issues related to regulatory requirements and ethical standards. An effective compliance program should have mechanisms in place to regularly assess and monitor compliance risks, track incidents, and implement corrective actions as needed.

If no problems are identified, it suggests that the program may not be functioning as intended. It could indicate a lack of thorough monitoring, insufficient training for staff, or an inadequate reporting system that fails to capture potential issues. Additionally, identifying problems is essential for continuous improvement; the goal is not only to detect violations but also to learn from them and enhance the program's procedures, training, and policies.

In the context of compliance, the ability to identify issues is a key indicator of the program's health and effectiveness. Thus, a compliance program needs to be proactive in recognizing and mitigating compliance risks to ensure it serves its intended purpose effectively.