Shall every business develop a compliance system?

DEFINITION

Compliance is nothing other than the observance of the organisational duties incumbent on the company management. Compliance measures are necessary to avoid criminal and liability risks for the management and the company.
There is no generally valid system that has already been developed and that can be adopted and
and adapt it to one’s own company.

COMPLIANCE SYSTEMS & RISKS

If one wants to set up a compliance system, this must correspond to the individual circumstances of the company, so this must be developed for each company. To do this, it would be necessary to first make a comprehensive risk inventory. The knowledge gained from this would then have to be implemented organisationally.
Another part of this is that the management must acknowledge that criminal offences, such as environmental or cartel violations or corruption offences, are not a means to achieve the business purpose, but that they can lead to penalties, loss of turnover and damage to the company’s image.

COMMUNICATION

Ultimately, the establishment of compliance measures must be communicated within the company. This also includes the training of employees.
All compliance measures must also be documented in order to be able to prove that the organisational obligation has been fulfilled in the event of a claim.

 

Is compliance for everybody? Generally speaking yes but it depends of course on the business idea you have. Avoid risks and unnecessary expenses. Contact our legal team. We will guide you through the best legal solutions for you. 

 

Shall every business develop a compliance system?

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