Articles
Understanding the Basics of Compliance Management
by Arthur L. GRC analystThe concept of compliance is used in many different contexts, and the confusion can be great in relation to what it entails. There is no clear answer either: Compliance must relate to a specific framework or set of rules to make sense, and therefore the variations necessarily become endless. This article describes what is generally meant by Corporate Compliance.
Corporate Compliance is about how a company defines, plans, organizes and executes its work to comply with the rules that are general and especially important to the company, as it has chosen to define it.
INTERNAL PROCEDURES
Corporate Compliance does not therefore deal specifically with one or more specific rules, such as anti-corruption, money laundering or human rights. Instead, it is primarily about how these rules are practically implemented on a daily basis. It can for example. be in the form of:
how rules are described for employees and manifested in internal procedures, training and communication,
how the work is reported,
how to follow up and
how internal investigations are conducted, etc.
This does not mean that Corporate Compliance is not hard-boiled law: The UK Bribery Act 2010 deals mainly with how companies must work with anti-corruption in order to be liable if corruption is uncovered in the company. And it is precisely this how that creates the most headache and work, and which can be said to be the procedural part of the concept of Corporate Compliance.
SPECIFIC INSTRUCTIONS FOR EMPLOYEES
In addition to the procedural part, there is also a need to provide specific instructions in key jurisdictions ( what is an acceptable gift, when is a conflict of interest legitimate, etc.). We are here facing the material side of Corporate Compliance. Which jurisdictions to be covered and described in a Code of Conduct or similar will, in principle, be up to the company itself. But here too there are established practices.
APPLIES TO THE ENTIRE COMPANY
A modern business will be subject to a number of legal rules as well as standards, recommendations and own internal rules. Most of these have a natural home in the organization, which often gives itself. The Legal Department will have a general responsibility for dealing with ongoing legal issues, as well as areas requiring special legal competence (such as competition law). Most large companies also have their own functions, which have special competence in the environment and safety ("HESQ"), while competence on employer legislation will often be within the HR function. In addition, some industries are subject to such comprehensive special legislation that they have their own functions that fulfill compliance, typically the pharmaceutical industry, the energy sector and the financial industry.
So what are we left with? In general, the concept of Corporate Compliance refers to compliance with the laws and regulations that apply to the entire company as such, which are relevant, like all employees , and which do not have a natural home in any particular part of the company.
ROBUST COMPLIANCE STRATEGY
Although there is a great deal of practice and legislation in place, the themes and how they are dealt with will, by the way, be determined by the company itself (ie its "compliance strategy").
Many businesses now use compliance management systems to manage compliance. Compliance management solutions can deliver a high level of compliance by automating compliance processes and streamlining compliance workflows throughout the organization. They also help management keep track of all compliance activities across the different departments constituting the business.
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About Arthur L. 
GRC analyst
9 connections, 0 recommendations, 42 honor points.Joined APSense since, December 11th, 2019, From Austin, United States.
Created on Dec 11th 2019 07:41. Viewed 418 times.
