What is one of the characteristics of policies and procedures review?

One of the key characteristics of policies and procedures review is the ability to identify areas that do not conform to state policies. This process is vital for ensuring that an organization operates within the legal frameworks and compliance requirements established by governing bodies. Regular reviews help to assess whether the current practices align with state regulations, thereby minimizing legal risks and potential liabilities.

This aspect of the review process is essential for maintaining a compliant and effective risk management framework and ensures that necessary adjustments can be made to adhere to regulatory standards. Engaging in this kind of review helps organizations stay proactive in addressing any discrepancies or outdated practices, which is crucial in maintaining operational integrity and safeguarding against potential regulatory fines or sanctions.

In contrast, the other options do not accurately reflect the purpose of a policies and procedures review. For instance, eliminating the need for insurance does not pertain to the review process's objectives, nor does the review focus solely on financial policies or guarantee alignment with industry standards without specific assessments.