Which method is often used to assess compliance risks in an organization?

Performing regular audits and risk assessments is a critical method for assessing compliance risks within an organization. This approach systematically evaluates the organization's operations, policies, and procedures against established regulations and standards. By conducting these audits, organizations can identify potential areas of non-compliance, uncover vulnerabilities, and assess the effectiveness of their current compliance programs.

Regular audits create a structured framework for continuously monitoring compliance, allowing organizations to proactively address issues before they escalate into more serious problems. Risk assessments complement this process by identifying and prioritizing risks based on their probability and potential impact, guiding the development of strategies to mitigate those risks. This combined approach enables organizations to maintain a strong compliance posture, ensuring they meet legal and regulatory requirements while minimizing the likelihood of violations.

In contrast, other options do not focus specifically on compliance risk assessment. Customer satisfaction surveys tend to gauge customer perceptions and experiences rather than compliance adherence. A suggestion box may provide valuable employee feedback but does not systematically evaluate compliance-related risks. Hiring external consultants can be beneficial for compliance, yet relying solely on them may overlook the importance of internal processes and continual monitoring.