What is enterprise risk management (ERM) related to compliance?

Enterprise risk management (ERM) related to compliance is best described as a comprehensive approach to identifying, assessing, and managing risks that may impact compliance. This systematic perspective helps organizations frame their compliance strategies by integrating risk management processes with their overall goals and operations.

Compliance risks can emerge from various sources, including regulatory changes, operational failures, and external threats. Utilizing a comprehensive ERM framework allows organizations to anticipate these risks and develop effective strategies to mitigate them. This ensures that the organization adheres to legal and regulatory requirements while also aligning compliance objectives with the overall enterprise goals.

The other choices do not encapsulate the essence of ERM in relation to compliance. Tracking employee workflows, enhancing customer experience, or focusing on financial planning, while important functions, do not address the core principles of ERM as it pertains specifically to compliance management and oversight.