Compliance: Formation, Implementation and Optimization of the System
Legal assistance in the formation of a compliance system in an organization
The effective operation of a company often depends on the correct application of legal requirements, timely control of organizational processes, exclusion of possible theft of property, exclusion of the use of corruption schemes, compliance with company policies and other compliance issues.
The formation and implementation of a compliance policy in a company, as a rule, is a conscious choice of the owners and management of the company, as a result of which the company’s activities become more transparent, less corrupt, and also aimed at complying with applicable law. Often, in order to conduct a compliance audit of the organization’s activities, business involve experts for a comprehensive legal audit of compliance with current legislation. As a rule, as a result of the audit, the company's management decides on the formation and implementation of a full-fledged compliance policy.
To build compliance in an organization, it is necessary to carry out a number of activities:
- A complete analysis of all current processes of the organization from technological to financial, this is due to the fact that, for example, violation of legal requirements can occur at any stage of the company’s operation. Such an audit will allow you to get a complete picture of the functioning of the company and show at what stage a violation of the requirements of the law occurs or may occur, or, for example, theft of property.
- Adoption of a compliance policy for an organization. For the comprehensive use of the compliance policy, when developing it, it is necessary to take into account all existing processes in order to include in the compliance the necessary documents that will regulate these processes.
- Implementation of a compliance policy, including the appointment of a responsible person (persons) who will be responsible for compliance activities in the company. An important element in the implementation of compliance in an organization is also the familiarization of all employees of the organization about the application of the compliance policy in the company. Some companies decide on additional education of employees in this area.
- Formation of a map of possible risks and control over the prevention of their occurrence. To implement this measure, a company is implementing relevant documents regulating compliance risks. Risks in the operation of a company occur in various areas, including in case of violation of the law (the risk of receiving penalties from suppliers or regulatory authorities), the risk of theft of company property, the risk of violating anti-corruption laws (damaging the company’s business reputation), the occurrence of a conflict of interest, the risk transfer of confidential information to third parties, etc. At the same time, with an integrated approach when implementing a compliance policy, it is also recommended to implement an automatic analysis of possible risks in various areas: checking employees, counterparties, concluded transactions, identifying conflicts of interest, test purchases, etc.
In the case of an already implemented compliance system in an organization, an important point is to check the effectiveness of its application. Efficiency is assessed by analyzing identified violations, as well as analyzing compliance activities in terms of the number of violations that were avoided with the help of the implemented compliance policy. Also, in order to assess the effectiveness of compliance, it is recommended to check employees for knowledge and use of the current compliance policy.
The activities that are necessary to build a compliance system in an organization depend on many factors, in this regard, a personal approach to the implementation of compliance allows it to be more carefully formed and correctly implemented in an organization. A full-fledged analysis of the company's activities, impartiality and experience of specialists make it possible to form and implement an effective and efficient compliance system, for this, qualified and competent third-party specialists are often involved.
The compliance system in the company is built on the following principles:
- The interest of the company’s management in the need to implement a compliance policy and a responsible approach to this process.
- Independence of specialists who form and implement compliance in the organization.
- Technical and financial capabilities to implement compliance.
- Responsible personnel who will be responsible for the compliance policy in the organization.
- Ability to provide comprehensive control over the application of compliance in the company.
When forming and implementing a compliance policy, it is important to understand that this is a dynamic system that will constantly undergo changes. This state of affairs in the compliance system is due to the fact that legislation is also a dynamic system in which adjustments are constantly taking place, laws are changing, new ones are being adopted, old ones are being canceled, etc. In this regard, the company’s compliance will need to be constantly changed, adjusted and supplemented. However, despite all the additional steps after the introduction of compliance, the result of its implementation and operation allows the business to operate more efficiently with minimal risks for entrepreneurs.
- Advising on the formation and alignment of the company’s compliance policy
- Assessment of company risks for integration compliance control
- Formation of compliance in the organization
- Preparation of the necessary documents regarding the formation and alignment of the compliance policy in the organization
- Legal assistance in the implementation of compliance