What is a significant outcome of performing a thorough risk assessment?

Performing a thorough risk assessment is fundamentally aimed at identifying potential compliance risks within an organization. This process involves systematically analyzing various aspects of operations and regulatory obligations to pinpoint areas where compliance could be at risk. By identifying these risks early, an organization can implement appropriate controls, policies, and training programs to mitigate them. This proactive approach helps ensure adherence to regulatory standards and reduces the likelihood of violations, which can lead to significant penalties or damage to reputation.

While reduction of internal conflicts, increased employee morale, and higher financial performance may be outcomes of effective risk management practices in a broader sense, they are not direct results of conducting a risk assessment itself. The primary focus of a risk assessment is to systematically identify and evaluate compliance risks, making the identification of potential compliance risks the most significant outcome.