An optimal approach begins by mapping each regulation to the business processes, products, and geographies it affects, then rating the potential impact of non-compliance (financial, operational, reputational). Regulations with the greatest applicability and highest potential impact are reviewed first, ensuring that limited assessment resources are directed to the areas of highest risk, fully consistent with Shared Assessments and NIST ERM guidance.

B – Alphabetical or random ordering ignores risk impact and wastes resources.

C – Prioritising only by implementation cost can overlook severe regulatory penalties.

D – Waiting for regulators to issue findings is reactive and contrary to risk-based compliance principles.

1. Shared Assessments. “TPRM Program Best Practices Guide,” 2022, §2.4, pp. 12-13 (map laws to risk and prioritise).

2. NIST ERM Framework, “Identify” Function, ID.GV-5 (prioritise legal/regulatory requirements by impact).

3. Harvard Kennedy School, “Risk-Based Compliance Management,” Course Notes 2021, Lecture 4.