Which of the following should be done FIRST upon learning that the organization will be affected by a new regulation in its industry?

Transferring risk is a risk treatment strategy that should only be considered after understanding the nature and extent of the risk through a gap analysis.

When a new regulation affects an organization, the immediate priority is to understand the extent to which current operations, policies, and systems align with or deviate from the new requirements. A gap analysis systematically compares the organization's existing state against the new regulatory mandates, identifying specific areas that need modification or new implementation to achieve compliance. This provides a clear roadmap for subsequent actions.

Determining risk appetite for the new regulation is an important strategic decision, but it's typically done after understanding the specific gaps and potential impacts identified by an analysis.

Implementing specific monitoring controls is a reactive measure that occurs much later, after gaps are identified, solutions are designed, and new controls are put in place.