Which of the following best describes the main goal of compliance risk management?

The main goal of compliance risk management is to effectively identify, assess, and mitigate risks associated with non-compliance to laws, regulations, and standards that govern an organization’s operations. This focus on avoiding legal penalties is crucial because violations can result in substantial financial consequences, reputational damage, and operational disruptions.

By establishing a robust compliance risk management framework, organizations can ensure they meet regulatory requirements and maintain ethical standards in their business practices. This proactive approach not only helps in minimizing legal risks but also fosters a culture of compliance within the organization, supporting long-term operational sustainability.

While other options may relate to broader business goals—like improving profit margins, enhancing employee engagement, or ensuring competitiveness—these do not directly address the specific purpose of compliance risk management, which is primarily centered around adhering to legal and regulatory obligations.