Question

A financial services firm operates in several countries, each with evolving data protection and reporting regulations. Over the past year, two business units were fined because they continued using outdated processes after a regulation changed, unaware that the requirement had been updated. The CRO wants to prevent recurrence by establishing a governance mechanism. Which approach BEST addresses the underlying governance weakness?

Accepted Answer

Establish a formal regulatory change management process that assigns ownership for monitoring, assessing impact, and updating affected controls and processes

Answer

Require each business unit to hire an external law firm to review its processes annually

Answer

Increase the frequency of internal audits so non-compliant processes are detected sooner

Answer

Add a clause to employee contracts holding staff personally liable for compliance failures