Compliance management
As in every legal, welfare, and economic system, the activity of employees in a company is determined by external and internal requirements. The increase in the number of requirements plus the inexorable rise in their complexity within a national and international context as well as the associated imposition of stricter sanctions for violations presents new challenges for companies.
It is therefore more important than ever to implement and utilize a compliance management system which can tackle these challenges effectively and efficiently. In addition to the introduction of a product compliance management in your company, we also offer compliance controlling support for customer projects to ensure adherence to external – such as public law and contractual rules – and internal regulations. At the same time, we work together with Globalnorm GmbH on a product compliance concept connected to a knowledge database. This project has allowed us to specialize in developing measures to increase the efficiency of the compliance management system within a company.
Compliance management is a key element of the company-wide risk management system to protect companies against a loss of earnings and financial losses. Its effectiveness can be enhanced by combining it with further elements of the risk management system, such as insurance and quality management or business continuity management, to form an integrated element.
Challenges of globalization
Increasing globalization demands new business relations and thus new provisions. This development will continue to gain momentum in the future. The probability of violations will rise due to the increasing number of rules and regulations. This also leads to an increase in “non-compliance” costs – be it in the form of fines, greater external influence on the corporate policy and strategy, marketing bans or damage to the company's reputation.
Each company defines certain requirements which its compliance management system must meet. The management’s demand for 100% compliance with all external and internal rules is often difficult to achieve, as the complexity and dynamics of the rules and the associated uncertainty usually prevent it. It is therefore important to create a functional compliance management system as the basic prerequisite to meet all the rules, thus guaranteeing a professional approach to potential compliance risks.
Elements of a product compliance management system
Implementation process
Development of a compliance management system
- Defining the target
- Market analysis
- Defining the minimum standards
- Implementing the system in corporate processes
- Assessing implementation
- Deriving improvement measures
- Checking their appropriateness, suitability, and effectiveness
