Timely anddentifiproblem solving, preventce and protectionat are the most importantm by compliance. Compliance For example identifies specific risksthat accrue to the company from its business. Based on this identification, it then issues, adopts, enforces and monitors internal regulations, and especially various measures to minimise these potential risks.
Concept Compliance generally means compliance with the rules. The aim of compliance is the prevention of undesirable phenomena and unlawful behaviour within a given society, However, its reach cannot be targeted only at criminal law, but at other areas such as corruption, bullying, discrimination, data protection, employment law, etc.
Compliance is not a purely legal subject, its origins lie in the field of corporate governance, with modern business corporations already choosing to adopt, enforce and follow compliance concept. Compliance has thus become a common part of internal strategies a corporate cultures.
It is important to note, however, that the above risk identification is not the only objective compliance. This is the creation of a single internal compliance system and ensuring compliance the conduct of the business corporation with legal regulations and ethical values. Typically, in practice, this involves the creation of Compliance programmes, Codes of Conduct, etc.
Properly set up and functioning compliance is important for a business corporation and nowadays compliance department becomes an integral part of the company's organisational structure.
Advantages of the introduction compliance
So what are the advantages of introducing compliance into society? First of all, the identification of the main risks and the familiarisation of employees with the risks has preventive function. Othe stock corporation Protects from possible legal consequences in connection with breaches of obligations and legal regulations.
And here we come to the very title of this article - don't wait for the auditor, compliance namely Detect problems early. Internal audit and Compliance perform very important but different functions in a business corporation.
Functions Compliance plays a predominantly "the second line" giantnybut in "the first line" defense also has a place for its own activities with responsibility for direct risk assessment, control and mitigation.
On the contrary, internal audit plays a third line of defence in corporate governance, which is more independent than the other two lines of defence. Internal audit provides independent assurance on the process and controls in place, not only on the owner of the end process, but also on the second life of the defence risk management function.
So what does all this imply? The existence of both departments is important, but even more important is the actual collaboration between them so, to help the board and management understand meaning of an integrated approach to governance activities. Because that Enables judicious use of resources, prevents undesirable outcomes and captures benefits to achieve business objectives.
