How can risk management assist compliance programs?

Risk management plays a crucial role in enhancing compliance programs by informing decisions that aim to mitigate compliance risks. This process involves systematically identifying, assessing, and prioritizing risks associated with regulatory requirements. By understanding these risks, organizations can implement effective strategies to minimize the likelihood of non-compliance and its associated penalties, which not only protects the organization but also promotes a culture of compliance.

Furthermore, this proactive approach enables organizations to allocate resources efficiently, ensuring that they focus on the most significant compliance threats. By integrating risk management into compliance efforts, organizations can effectively adapt their policies and practices as regulations evolve, creating a more resilient compliance framework.

The other options do not align with the core function of risk management in relation to compliance. Identifying only financial risks overlooks broader compliance issues, implementing additional regulations does not inherently address existing risks, and reducing workforce size does not contribute positively to managing compliance-related risks. Instead, it can create gaps in compliance oversight and awareness.