There are numerous criminal and quasi-criminal regimes in Canada that provide authorities with search and seizure powers. As well, many industry or other regulatory regimes include inspection or other investigatory powers

Risk assessment is the first step an organization must take to determine whether it is prepared for a potential search and inspection, and to determine any steps that can be taken to reduce the risk of such searches occurring.

An organization’s risk level will depend on:

  1. The nature of organization’s operations;
  2. The organization’s internal culture; and
  3. The likelihood of media scrutiny.

The Analytical Framework for Assessing an Organizations Risk for a Search or Inspection

Probability of Investigation

Costs of Investigation
  1. Likelihood of a complaint (from competitor, customer, supplier, disgruntled employee, etc.)
  2. Likelihood of media coverage
  3. Likelihood that enforcement authorities will initiate and pursue an investigation
  1. Time spent by company personnel
  2. Fees for professional advisors
  3. Impact of uncertainty
  4. Potential reputational effects if market participants or media become aware


Probability of Negative Outcome

Consequences of Negative Outcome
  1. Likelihood of a complaint (from competitor, customer, supplier, disgruntled employee, etc.)
  2. Likelihood of media coverage
  3. Likelihood that enforcement authorities will initiate and pursue an investigation
  1. Time spent by company personnel
  2. Fees for professional advisors
  3. Impact of uncertainty
  4. Potential reputational effects if market participants or media become aware