Compliance meaning
Compliance is understood to mean adherence to and observance of those laws, official requirements, regulatory provisions, international standards and agreements that affect the specific company. Compliance also requires adherence to internal company guidelines and instructions from the employer.
Compliance with all applicable regulations essentially contributes to ethical business practice and creates high added value for the company.
Compliance management covers all relevant compliance issues in the company and the implementation of measures to act more compliantly. You can read more about compliance management and the compliance management system (CMS) in our last blog post here.
What is a compliance officer? – Meaning and tasks
The work of a compliance officer (also known as a compliance management officer) is becoming increasingly important as companies have to fulfil ever more complex legal and regulatory requirements. A compliance officer is responsible for ensuring that all relevant laws and regulations are complied with and that ethical behaviour is upheld.
Tasks of a compliance officer
A Compliance Officer ensures that all business activities and processes comply with applicable laws, regulations, internal policies and ethical standards. The main tasks of a compliance officer include:
- Monitoring of business processes: Ensuring compliance with legal provisions, internal rules and ethical guidelines using a compliance management system (CMS).
- Identifying and minimising risks: Recognising potential risks that may arise from non-compliance with laws and regulations and implementing suitable measures to mitigate risks.
- Consulting and training: Training employees to ensure that they are aware of and comply with applicable laws and advising management on decisions with compliance implications.
- Reporting: Regular reporting to the management on the status of compliance in the company.
- Setting up and maintaining control systems: Implementation of internal control systems (ICS) and risk management systems (RMS) to prevent, detect and respond to compliance risks.
- ISO-Standards: Implementation of standards such as ISO 37301 for compliance management systems
- Supervision of the Whistleblower system: Monitoring reports within the whistleblower system as well as the compliant processing of incoming reports.
Identifying and responding to compliance risks
Compliance officers can identify compliance risks and determine how to respond to them on an organisation-specific basis. From the first step to the long-term strategic direction of compliance, a full range of prevention, detection and response measures are presented, including:
- Establishment of an internal control system (ICS)
- Riskmanagementsystem (RMS)
- ISO 37301 Guidelines for the use of compliance management systems
What are the advantages of having a Compliance Officer?
- Far-reaching knowledge and clarity:You will have comprehensive knowledge from a legal, business, ethical and (organisational) psychological perspective without having to deal with it yourself. The compliance officer can answer your questions and help you gain clarity.
- Current developments and laws: The compliance officer keeps you informed about current developments and laws, such as the Whistleblower Protection Act, and you can benefit from their expertise.
- Compliance Management System: The compliance officer often introduces a compliance management system or a whistleblower system into the company, which helps them as well as the management and staff to maintain a better overview of compliance/circumstances in the company.
Conclusion: The role of the compliance officer in the company
Compliance with all applicable regulations essentially contributes to ethical business practice and creates high added value for the company. Through the support of a compliance officers potential risks are identified and minimised as quickly as possible and you always have a competent contact person for your compliance-related questions.