In what situations might an external review of compliance be warranted?

An external review of compliance is particularly warranted in cases of significant compliance failures. This situation indicates that there are serious concerns about the organization's adherence to regulations or ethical standards. Conducting an external review provides an impartial perspective, which is essential for identifying the root causes of these failures and understanding the extent of the compliance issues. This independent evaluation can help organizations implement corrective actions, enhance their compliance programs, and rebuild trust among stakeholders.

In contrast, a full compliance situation does not typically necessitate an external review since the organization is already meeting required standards. Similarly, when an organization is performing exceptionally or when employees feel free to express their opinions, these scenarios do not highlight any underlying compliance risks that would typically prompt the need for an external review. Instead, they may reflect a healthy, functioning compliance environment that requires ongoing internal monitoring rather than an external examination.