What is an essential strategy for effective risk mitigation in regulatory practices?

Regular monitoring and review of regulatory changes is crucial for effective risk mitigation in regulatory practices because regulations are dynamic and can frequently change due to new policies, legal requirements, or industry standards. Staying informed about these changes allows organizations to promptly adjust their compliance strategies, practices, and procedures, thereby reducing the risk of non-compliance, penalties, and disruptions in operations.

By actively tracking regulatory developments, a business can anticipate challenges, prepare for new requirements, and make informed decisions that align with legal expectations. This proactive approach helps maintain the integrity of products or services, ensures ongoing compliance, and fosters accountability and trust with regulatory bodies and stakeholders. In contrast, the other options do not directly address the need for continuous adaptation and responsiveness to the evolving regulatory landscape, making them less effective strategies for risk mitigation in this context.