What is the recommended action for organizations when a problem is detected?

The recommended action for organizations when a problem is detected is to engage in voluntary disclosure within a specified time frame, such as prior to 30 days but not more than 60 days. This approach demonstrates a proactive commitment to compliance and accountability. By disclosing the issue voluntarily, organizations can often mitigate potential penalties and demonstrate their willingness to address the concern transparently. This timely action can foster trust with regulatory bodies, stakeholders, and the public by showing that the organization takes compliance seriously and is committed to rectifying any problems.

In contrast, immediate public disclosure may not allow the organization sufficient time to understand the full scope of the issue or develop a response strategy, which could lead to reputational harm or unnecessary panic. Hiring an external auditor is a useful step in some scenarios but may not address the urgency of reporting issues as mandated by regulatory frameworks. Ignoring the issue until further notice is clearly detrimental and could exacerbate legal consequences or result in greater fines once the issue comes to light. Hence, voluntary disclosure within the established timeframe is often seen as the most prudent course of action.