When describing a time you faced a compliance or ethical risk, which approach is appropriate?

• A. Postpone action until policy is updated
• B. Ignore the risk if it seems small
• C. Identify risk, apply policy, consult stakeholders, and document outcome
• D. Delegate entirely to others

Answer: (C)

Handling compliance or ethical risk calls for a structured, accountable response. The best approach is to identify the risk, apply the policy, consult stakeholders, and document the outcome. Identifying the risk helps you understand what could go wrong and what rules may apply. Applying the policy ensures actions are grounded in established guidelines rather than guesses. Consulting stakeholders brings in diverse perspectives, ensuring the response fits governance expectations and legal or reputational considerations. Documenting the outcome creates an auditable trail, supporting accountability and serving as a record for future audits or investigations. This combination promotes timely, responsible decision-making that protects both individuals and the organization.

Postponing action until policy updates can delay needed safeguards and allow the risk to grow. Ignoring the risk, even if it seems small, goes against ethical standards and can lead to bigger problems. Delegating entirely to others eliminates personal responsibility and may leave the issue unmanaged or inadequately addressed.