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Glossary › Ethics & Compliance Risk
What is Ethics & Compliance Risk
Ethics and compliance risk examines exposure created by non-compliant vendor practices, unethical behavior, bribery, fraud, or violations of regulatory requirements. In TPRM, evaluating this risk ensures vendors uphold legal and ethical obligations that protect the organization from liability.
FAQs
Why does ethical risk matter?
Misconduct by vendors can create regulatory penalties.
Is it only about legal compliance?
No, it includes ethical expectations and conduct standards.
Do high-risk vendors require special oversight?
Yes, they require deeper reviews and monitoring.
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