What Does “De-Risking” Mean? Choose Carefully.
FCPA Blog – The compliance term de-risking has undergone radical shifts in meaning, which has led to confusion.
Richard L. Cassin warns that there are three possible—and still acceptable—meanings of de-risking, and assigning the wrong understanding to it could inflict serious damage on your company and your career:
- To reduce, remove, or eliminate risk
- To terminate or restrict business relationships with clients or categories of clients to avoid, rather than manage, risk
- To disconnect enough to reduce the threat of coercion, without encouraging paranoia or rogue behavior that causes unneeded harm
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