What should a collection plan include to ensure compliance and minimize risk?

• A. Documented processes, training, monitoring, adherence to laws, and regular audits; include escalation paths.
• B. Rely on informal processes with ad hoc updates.
• C. No escalation paths and no audits.
• D. Focusing only on collection and ignoring laws.

Answer: (C)

A solid collection plan is systematic and compliant. It should include documented processes so everyone follows the same steps, training to ensure staff understand and apply those steps correctly, ongoing monitoring to catch deviations, strict adherence to applicable laws, and regular audits to verify effectiveness and identify improvements. Also include escalation paths so issues are raised and resolved promptly. Together, these elements create a defensible framework that reduces operational and legal risk and protects reputation. Relying on informal processes introduces inconsistency and gaps; lacking escalation or audits leaves problems hidden and unaddressed; and focusing only on collection while ignoring laws exposes the organization to legal penalties and compliance failures.