Which of the following is MOST appropriate method to evaluate the potential impact of legal, regulatory, and contractual requirements on business objectives?
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A. B. C. D.B.
A compliance-oriented BIA will identify all the compliance requirements to which the enterprise has to align and their impacts on business objectives and activities.
It is a discovery process meant to uncover the inner workings of any process.
Hence it will also evaluate the potential impact of legal, regulatory, and contractual requirements on business objectives.
Incorrect Answers: A: Communication with business process stakeholders is done so as to identify the business objectives, but it does not help in identifying impacts.
C: Compliance-oriented gap analysis will only identify the gaps in compliance to current requirements and will not identify impacts to business objectives.
D: Mapping of compliance requirements to policies and procedures will identify only the way the compliance is achieved but not the business impact.
Legal, regulatory, and contractual requirements can have a significant impact on the business objectives of an organization. Therefore, it is essential to evaluate the potential impact of such requirements on the organization to ensure compliance and avoid legal and financial risks.
Out of the given options, the most appropriate method to evaluate the potential impact of legal, regulatory, and contractual requirements on business objectives is Compliance-oriented business impact analysis (BIA).
Compliance-oriented BIA is a process that helps organizations to identify and assess the impact of legal, regulatory, and contractual requirements on their business processes and objectives. It involves analyzing the risks associated with non-compliance with such requirements, identifying critical business processes, and assessing the potential impact of non-compliance on these processes.
Compliance-oriented BIA typically involves the following steps:
Option A, communication with business process stakeholders, can be a useful approach to gather information about the impact of legal, regulatory, and contractual requirements on business processes. However, it may not provide a comprehensive understanding of the potential impact on the organization's overall business objectives.
Option C, compliance-oriented gap analysis, involves identifying the gaps between the organization's current practices and the legal, regulatory, and contractual requirements. While this approach can help identify areas of non-compliance, it may not provide a comprehensive assessment of the potential impact on the organization's business objectives.
Option D, mapping compliance requirements to policies and procedures, can be a useful approach to ensure compliance with legal, regulatory, and contractual requirements. However, it may not provide a comprehensive assessment of the potential impact of non-compliance on the organization's business objectives.
Therefore, out of the given options, compliance-oriented BIA is the most appropriate method to evaluate the potential impact of legal, regulatory, and contractual requirements on business objectives as it provides a comprehensive understanding of the risks associated with non-compliance and identifies critical business processes that could be impacted.