Compliance risk assessment evaluates the organization's exposure to regulatory violations by examining applicable requirements, current control effectiveness, and potential consequences of non-compliance. Assessments typically consider regulatory complexity, pace of change, control maturity, and enforcement trends. Results inform compliance program priorities and resource allocation. A global bank conducting compliance risk assessment would evaluate anti-money laundering controls across jurisdictions, assess sanctions screening effectiveness, review consumer protection compliance, analyze regulatory examination findings, and create a heat map of compliance risks that prioritizes higher-risk areas like new product launches or emerging regulatory requirements for enhanced monitoring and control investment.