Compliance encompasses all the steps a company takes to comply with rules and avoid violations. The entirety of these steps is called a compliance management system.
Compliance is mandatory in the modern business world in order to successfully avoid criminal offences, fines and claims for damages.
Compliance Management Structure
There is no patent remedy for a compliance management system, because each company is individually different and needs a concept that is specifically tailored to its demands and needs. In addition to the size of the company and its position in the market, the key stakeholders are also a decisive factor. When setting up an in-house system, the industry-specific requirements naturally play an important role.
However, proven compliance structures serve as the basis for a compliance management system. A function compliance management system should therefore address the following points.
- Information and Communication
- Monitoring and Enhancement
- Incentives and sanctions
The standardised points of a compliance management system are called “elements” by experts; they build on each other.