Compliance — actions in accordance with the company's internal policies, ethical standards, Russian and foreign legislation, and other regulatory documents.
Implementation of compliance in the company is a set of initiatives aimed at preventing actions of the company's employees that contradict the law and implementing corporate business ethics based on compliance with the law, as well as creating mechanisms for analyzing, identifying, evaluating, managing and preventing reputational, financial and other risks in the organization.
Compliance with laws, rules and standards in the field of compliance usually concerns issues such as compliance with appropriate standards of conduct in the market, management of conflicts of interest, fair treatment of clients and ensuring a fair approach when advising clients.
Violation of these requirements can lead a person or business to major financial losses, or to serious restrictions.
The scope of compliance includes:
- countering the legalization of proceeds from crime and the financing of terrorism;
- development of documents and procedures that ensure compliance of the company's activities with the current legislation;
- protecting information flows, countering fraud and corruption, setting ethical standards for employee behavior, and so on.
Why is it important to know?
This directly affects your financial interests. If you own/manage a business, you need to comply with many laws. Otherwise, your business may suffer significant damage up to bankruptcy. If you hold a serious position in the company or in the public service, then compliance with the requirements is necessary to continue working in the current position without the risk of fines and dismissal.
Compliance is a system for monitoring and managing risks arising from non-compliance with:
- legislation;
- regulations of regulators and controlling organizations;
- rules of self-regulating organizations and other forms of business associations;
- internal document.
Currently, the presence of compliance is:
- Guarantee of business cleanliness.
- Evidence of law-abiding firms, transparency of its accounting and reporting.
- Proof of responsibility of Executive bodies.
- Relations based on the principles of equality and justice.
- An indicator of a high level of corporate culture and professionalism.
Thus, the implementation of compliance improves the company's reputation, raises its value in the eyes of partners and investors, and increases the trust of customers and employees. A campaign can attract more resources, increase market share, and increase profitability.
It is also worth noting the growth of trust on the part of Supervisory agencies. Detected violations are considered as private, committed by one person, and not systemic. For campaigns that have implemented a control system, there are restrictions on the imposition of sanctions.
The compliance system is divided into three levels:
- Prevention;
- Detection;
- Reaction.
Prevention
- Identification and assessment of compliance risks.
- The development of policies and procedures.
- Trainings and communications.
- Advice and support.
- Integration and personal process.
- Collective interaction.
Identification
- An anonymous "Tell us" line and an external Ombudsman (Representative of someone's interests. Today, the Ombudsman is an independent official who is engaged in the protection of human rights from two positions: justice and legality).
- Compliance control.
- Monitoring and verification of partners and suppliers.
- Compliance audit.
- Compliance tests.
Reaction
- Conclusions from the mistakes.
- Modification.
- Tracking.
Summarize
Compliance reduces the likelihood of threats to your company and will establish a system of personnel management and risk management. Implementation of compliance improves the company's reputation, raises its value in the eyes of partners and investors, and increases the trust of customers and employees. A campaign can attract more resources, increase market share, and increase profitability.
It is also worth noting the growth of trust on the part of Supervisory agencies. Detected violations are considered as private, committed by one person, and not systemic. For campaigns that have implemented a control system, there are restrictions on the imposition of sanctions.
