Which is a result of an organization following the local laws of a country where it operates?

Compliance is defined as the act of adhering to requirements. These requirements can be internal, such as organizational policies, or external, such as laws, regulations, and contractual obligations. When an organization follows the local laws of a country where it operates, it is directly engaging in the act of compliance. Therefore, the most direct and immediate result of this action is an improved state of compliance with those specific legal and regulatory requirements. This is a core component of the 'Compliance' aspect within the Governance, Risk, and Compliance (GRC) framework.

A. Improved governance: Governance is the overall framework for directing and controlling an organization. While compliance is a key outcome of good governance, following a specific law is an act of compliance itself, not a direct improvement of the entire governance system.

B. Increased risk: Following laws is a risk mitigation activity. It is intended to reduce or avoid legal, financial, and reputational risks associated with non-compliance, not increase them.

D. Increased value: While improved compliance can lead to increased value by avoiding fines and enhancing reputation, this is a secondary or indirect outcome. The most direct result of following a law is achieving compliance.

1. AXELOS. (2020). ITIL® 4: Direct

Plan and Improve. TSO (The Stationery Office).

Section 3.2.3

'Compliance': "In the context of an organization

compliance means ensuring that the requirements of standards

policies

and regulations are met. Compliance management begins by identifying the requirements with which the organization must comply. These may be... external

such as laws

regulations

standards

and contractual obligations." This directly links following laws to the act and result of compliance.

Section 3.2

'Governance

risk

and compliance (GRC)': This section outlines how compliance is an integral part of the overall GRC approach

distinguishing it from the broader concept of governance and the function of risk management.