An organization is engaged in international business operations and is required to comply with various legal frameworks.
In addition to changes in legal frameworks, which of the following is a primary purpose of a compliance management program?
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A. B. C. D.C.
Compliance management programs are designed to help organizations comply with legal and regulatory requirements, as well as internal policies and procedures. The primary purpose of such programs is to minimize the risk of legal, financial, and reputational harm to the organization.
In the given scenario, the organization is engaged in international business operations and is required to comply with various legal frameworks. This implies that the organization needs to follow laws and regulations that are applicable to the jurisdictions in which it operates. Legal frameworks can change over time due to new legislation or amendments to existing laws, and failure to comply with such changes can result in legal and financial penalties. Therefore, it is important for the organization to have a compliance management program that enables it to stay up-to-date with the changes in legal frameworks and ensure compliance with them.
Option A, "Following new requirements that result from contractual obligations," is not the primary purpose of a compliance management program. While contractual obligations may impose certain compliance requirements on an organization, they are not the main drivers of a compliance program.
Option B, "Answering requests from auditors that relate to e-discovery," is a specific aspect of compliance management related to electronic data discovery, which is the process of identifying, collecting, and producing electronically stored information in response to a legal request. While e-discovery is an important part of compliance management, it is not the primary purpose of the program.
Option C, "Responding to changes in regulatory requirements," is the correct answer. Compliance management programs are primarily designed to help organizations comply with regulatory requirements, which can change over time. Regulatory requirements can be imposed by government agencies, industry bodies, or other regulatory bodies, and failure to comply with them can result in legal and financial penalties.
Option D, "Developing organizational policies that relate to hiring and termination procedures," is not the primary purpose of a compliance management program. While developing policies and procedures is an important aspect of compliance management, it is not the main purpose of the program.