What should organizations develop to effectively document compliance risks?

Organizations should develop a risk assessment to effectively document compliance risks. A risk assessment involves systematically identifying, analyzing, and evaluating the various risks that an organization faces in its compliance efforts. This process helps in understanding the potential compliance violations that could arise and their implications. It also guides organizations in prioritizing risks based on their likelihood and potential impact, enabling them to formulate appropriate strategies to mitigate those risks.

While measuring key risk indicators and identifying key performance indicators are important components of a compliance program, they are typically informed by the insights gained from a comprehensive risk assessment. Training leadership is beneficial for fostering a compliance culture and ensuring accountability, but it does not directly address the documentation of compliance risks in a structured way. A thorough risk assessment provides the foundational understanding that enables organizations to implement effective compliance strategies.