What is the first step in creating a compliance program?

The foundation of a compliance program begins with the identification of all applicable laws. This step is crucial because organizations must understand the legal and regulatory framework that governs their operations to ensure compliance. By identifying these laws, an organization can tailor its compliance program to address specific requirements and obligations, thereby mitigating risks associated with non-compliance.

Understanding applicable laws helps inform policies, procedures, and training programs necessary for maintaining compliance. This step ensures that the compliance program aligns with local, state, and federal regulations, as well as industry standards. Without first identifying the relevant laws, subsequent steps in creating a compliance program, such as audits, education, and investigations, may not be effectively targeted or relevant, potentially leading to gaps in compliance.