Which of the following is a benefit of self-disclosure?

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Self-disclosure, particularly in compliance and regulatory contexts, often leads to a reduction in damages. This is because when an organization voluntarily discloses its own compliance violations or issues, it demonstrates a commitment to transparency and accountability. Regulatory agencies often view self-disclosure favorably, as it allows them to address problems more swiftly and can result in more lenient penalties than if the violations were discovered through an external audit or whistleblower claims.

When an organization proactively reports its non-compliance, it can also engage in corrective actions more effectively, which can further mitigate potential damages or penalties. By demonstrating a willingness to take responsibility and rectify issues, the organization may also foster a more favorable relationship with regulatory bodies, potentially leading to reduced scrutiny in future audits or investigations. This proactive approach stands in contrast to other consequences like increased likelihood of qui tam actions, higher civil penalties, or mandatory audits, which are generally considered negative outcomes rather than benefits.

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