A CEO’s words on ethics and integrity matter. The CEO sets the tone, signals the company’s integrity priorities, and determines how employees understand the company’s culture. A CEO’s public speeches, online statements, and inspiring declarations signal leadership’s commitment to integrity. While CEOs are essential, they do not exist in a vacuum, they are one part of an integrity system.

I understand that “imperfect” might induce some quease. And, yes, third party due diligence should be as close to perfect as available tools and budgets permit. But risk assessments aren’t perfect and don’t need to be to be defensible. Compliance professionals rarely agree on all criteria for a risk-ranking, much less the relative weight assigned to each.

Compliance is too rarely a consideration for some of the world’s smallest companies. However, as they grow in size and sophistication...