What is the first action a compliance professional should take upon detecting wrongdoing?

The appropriate first action for a compliance professional upon detecting wrongdoing is to contact legal counsel. This step is critical for several reasons. Legal counsel can provide essential guidance on how to navigate the complex legal implications of the wrongdoing and help ensure that any response is compliant with applicable laws and regulations. Consulting with legal experts also assists in protecting the organization from potential legal liability by ensuring that appropriate actions are taken swiftly and correctly.

Engaging legal counsel first allows the compliance professional to understand the scope of the issue, the regulatory requirements involved, and the best strategies for proceeding. This often includes determining whether there are mandatory reporting obligations, assessing the potential for regulatory investigations, or evaluating how to minimize harm while ensuring that remedial actions are taken.

The other options are not the immediate next steps that would align with best practices in compliance. For instance, notifying the media could compromise investigations and violate confidentiality protocols, while issuing a public statement may be premature without thoroughly understanding the situation and consulting with legal advisors. Conducting an internal audit is important, but it typically follows the initial step of gathering legal advice to ensure that the audit process itself is structured correctly and does not interfere with any legal obligations.