How does GEMD view the relationship between risk management and compliance?

The correct answer underscores the integral role that effective risk management plays in achieving compliance within organizations. GEMD recognizes that risk management and compliance are interconnected processes; a strong risk management framework not only identifies and mitigates potential threats but also ensures that the organization adheres to relevant laws, regulations, and standards.

By proactively managing risks, organizations can anticipate compliance challenges and address them before they escalate into more significant issues. This proactive approach enhances overall organizational efficiency and minimizes potential legal and financial repercussions. As a result, effective risk management is seen as a foundational element that supports and strengthens compliance efforts, creating a holistic approach to governance that benefits the overall operational integrity of the organization.

This view highlights the importance of integrating risk management into the compliance framework, rather than treating them as entirely separate or competing priorities.