Compliance describes the act of adhering to rules in an organisation such as a company or business. The word itself is derived from the English term “to comply with”.

The objectives of compliance are for instance:

• Reduce liability risks
• Ensure compliant behaviour
• Avoid reputational damage
• Integrate compliance into operational work processes

• Employees such as clerks, skilled workers, trainees, temporary workers, agency workers or temporary personnel
• Leaders/Managers
• Business Administration

Both violations of legal or other external regulations by employees and the disregard of internal guidelines with possible consequences for the company and its employees represent compliance risks. Whether the violation was intentional or negligent is just as insignificant as the fact whether the disregard was only partial or complete.

Consequences can be the following:

• Criminal prosecution for e.g. fraud or embezzlement;
• Financial sanctions such as fines or penalties;
• Civil law claims such as claims for damages;
• Measures such as sanctions by supervisory authorities.

A compliance management system (CMS) is designed to ensure conformity with rules. Rules can include legally binding and ethical rules.

Measures, structures and processes in their entirety that serve to ensure uniform compliance with the rules constitute a CMS. This is set up specifically for an organisation such as a company. CMS is suitable for all types of companies.