Risk-Based Approach to Compliance

A Risk-Based Approach to Compliance means focusing resources and efforts on areas with the highest potential for issues or violations. Instead of applying the same level of scrutiny everywhere, organizations evaluate where risks are greatest—like financial, operational, or reputational—and prioritize those. This approach helps ensure effective use of time and resources, reduces unnecessary burdens, and strengthens overall compliance by addressing the most critical risks proactively. It is a strategic way to manage compliance obligations efficiently while safeguarding the organization.