Upon identifying a potential violation, what should be done first?

When a potential violation is identified, conducting an internal investigation is the first and most crucial step. This investigation allows the organization to gather relevant facts, understand the scope of the issue, and determine whether a violation has actually occurred. It involves reviewing documentation, interviewing personnel, and analyzing processes related to the violation.

An internal investigation is essential because it provides the organization with a clear understanding of the situation, which is necessary to address the violation appropriately. After fully understanding the situation through the internal investigation, it becomes easier to decide whether the issue needs to be escalated to legal counsel or reported to regulatory bodies. This approach ensures that decisions are made based on verified information rather than assumptions or incomplete data.

Furthermore, starting with an investigation can protect the organization by demonstrating due diligence and potentially mitigating penalties if a report must be made to regulatory bodies later in the process. Overall, performing an internal investigation is fundamental to establishing a comprehensive understanding of the potential violation and determining the next steps appropriately.