Best practices for conducting a compliance risk assessment
Davis Polk partners Dan Kahn and Tatiana Martins, counsel Jordan Leigh Smith and associate Maria Morris authored “Best practices for conducting a compliance risk assessment” in Latin Lawyer’s The Guide to Corporate Compliance – Fifth Edition. The article provides insights for corporate decision-makers on effectively handling compliance obligations in Latin America, with an emphasis on implementing a compliance program designed to prevent and detect criminal conduct and non-compliance with corporate policies and procedures.
To design such a program, the authors explain that it is essential to understand the risks unique to each company and tailor the compliance program to address those risks. Even when misconduct occurs, the existence of a compliance program that is thoughtfully designed to address a company’s specific risk profile and one that is periodically updated is considered by regulatory authorities to be a critical mitigating factor when determining potential penalties for legal violations.