Question

The Federal Sentencing Guidelines for Organizations (FSGO) _____.

a. encourages companies to assess their key risk areas and use a standard compliance program to address these risks and satisfy key effectiveness criteria.
b. encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria.
c. discourages companies from assessing their key risk areas and customizing a compliance program to address these risks and satisfy key effectiveness criteria.
d. encourages but does not require the firm's board, top management, and high-level personnel exercise reasonable oversight of standards and procedures.

Answer 1

(B) Encourages companies to assess their key risk areas and customize a compliance program to address these risks and satisfy key effectiveness criteria.

Step-by-step explanation:

The Federal Sentencing Guidelines for Organizations (FSGO) is a document devised by the U.S sentencing commission to set standards on how a federal judge should pass a sentencing to an organization when a federal crime is uncovered. The main focus is how an organization would be impacted when an individual working with them are found to have been the culprit to the aforementioned crime.

Through the implementation of FSGO, it is possible to pursue the organization that the individual works for to be an accomplice of the crime - depending on how well they manage their compliance and ethics program.

Companies that have implemented good programs (and can prove this) would receive lenient sentencing than those with none. Thus, it is in the best interest of the organization to design a compliance program based on these risk areas to ensure that the organization would be able to manage such situations when it arises.