METHODOLOGICAL APPROACHES TO COMPLIANCE RISK ASSESSMENT BASED ON MATRIX ANALYSIS

Abstract

The article examines the essence of compliance as a tool for ensuring adherence to regulatory, ethical, and corporate standards in company operations. It is substantiated that compliance encompasses not only legal requirements but also the development of a culture of integrity, which contributes to reducing reputational and financial risks. The main types of compliance risks are identified, including regulatory, reputational, operational, anti-corruption, tax, contractual, sanctions-related risks, as well as risks related to financial monitoring, personal data protection, and IT and cybersecurity. Approaches to compliance risk management based on identification, assessment, and monitoring are analyzed. Particular attention is paid to risk assessment as a key stage of management, which involves determining the probability of adverse events and the scale of their consequences. A four-level risk assessment scale and a matrix-based approach are proposed, enabling the classification of risks by severity and the prioritization of management actions. The study characterizes a matrix for assessing the consequences of adverse events across key areas of activity, including impact on people, assets, finances, reputation, and organizational capacity. Additionally, a probability assessment matrix based on frequency and statistical indicators is described. These approaches are integrated into a comprehensive risk matrix that allows determining the overall risk level and appropriate management responses. It is demonstrated that a systematic approach to compliance enhances financial stability and strengthens corporate resilience. Furthermore, implementing an effective compliance risk management system improves business process transparency, optimizes resource allocation, and enables timely response to emerging internal and external threats. The authors emphasize the importance of continuous monitoring and adapting compliance programs to legislative changes and market conditions. The proposed methodology can serve as a practical tool for enhancing risk management efficiency and ensuring long-term competitiveness of companies.