Which concept is characterized by adhering to laws, regulations, and standards?

The concept characterized by adhering to laws, regulations, and standards is compliance. In a business context, compliance refers to the processes and procedures that organizations implement to ensure they are following legal and regulatory requirements relevant to their industry. This can include everything from financial regulations, environmental laws, and workplace safety standards to data protection laws like GDPR.

By maintaining compliance, businesses help avoid legal penalties, enhance their reputation, and build trust with customers and stakeholders. Essentially, compliance is about meeting externally imposed requirements, which can significantly impact how a business operates.

In contrast, risk assessment focuses on identifying and analyzing potential risks that could negatively affect an organization, quality assurance pertains to ensuring products or services meet consistent standards of quality, and operational strategy involves planning and executing the efficient management of resources and processes to achieve organizational goals. These concepts may intertwine with compliance but do not directly encapsulate the idea of adhering to legal and regulatory requirements as compliance does.