Compliance management in a company

Effective compliance management is the foundation of sustainable corporate governance. It ensures that all legal regulations, internal guidelines and ethical standards are adhered to - and thus protects the company from legal and financial risks. But how is this process implemented in practice? This is where the Compliance Management System (CMS) comes into play. As an indispensable tool, it brings together all the guidelines, processes and technical solutions that are necessary to anchor compliance in the company in a structured and systematic way.In this article, you will learn which components a powerful CMS comprises, how it effectively supports your compliance management and which steps will help you to set up a successful system.

Meaning of compliance management 
Compliance management describes the entire process and responsibility of ensuring that a company complies with all legal regulations, internal guidelines and ethical standards. This involves the planning, implementation and monitoring of all activities that help to prevent violations and legally safeguard the company.

Meaing of compliance management system 
A compliance management system (CMS) is a key instrument for efficiently managing compliance within the company. With the help of a digital software solution such as Eticor's compliance management software, you can organize, document, systematically implement and continuously monitor your compliance requirements in a targeted manner. This allows you to identify violations at an early stage, minimize risks and establish a culture of compliance within the company.

Goals of a compliance management systems
The main goals of compliance management are:

• Legal conformity: Ensuring that all legal requirements are met.
• Risk minimization: Avoiding fines, legal sanctions and reputational damage.
• Protection of reputation: Building and maintaining a positive corporate image through ethical conduct.
• Improving internal processes: Promoting efficient and transparent processes within the company.

Is a compliance management system mandatory?
Although a compliance management system (CMS) is not mandatory for companies, it is extremely valuable in today's VUCA world. The fast-paced changes require agile ways of acting in order to meet the constantly growing legal requirements, such as those from the Supply Chain Due Diligence Act (LkSG) or the requirements from the ESG area. A well-established CMS helps companies to remain flexible so that they can adapt better and identify and manage potential risks at an early stage.

How does a compliance management software support companies with the implementation?
A modern compliance software such as Eticor's offers comprehensive options for monitoring and controlling compliance processes. It supports efficient implementation and enables complete documentation of all compliance measures. The integration of such software significantly simplifies monitoring and enables companies to prove their legal conformity at any time. Automated reporting ensures that all activities are monitored transparently and comprehensibly. In this way, software solutions support companies in meeting their compliance requirements efficiently and sustainably.

Tips & tricks for setting up a compliance management system

1. Establishing a compliance culture: The implementation of a CMS starts with the management. The management must act as a role model and promote an open compliance culture.
2. Carry out a risk assessment: Indentify potential risks in your company and develop measures to minimize risks.
3. Training and awareness-raising: Train your employees regularly to promote a deep understanding of compliance guidelines.
4. Documentation and monitoring: Comprehensive documentation and regular audits are necessary to ensure that the guidelines are being adhered to.
5. Use technological support: Use a modern compliance management software to automate monitoring and reporting.

What elements are included in a compliance management system?
A comprehensive compliance management system comprises several core components:

• Compliance Organization: A clear structure in which roles and responsibilities are defined.
• Interne Compliance-Richtlinien: Written rules and processes that apply throughout the company.
• ISO Compliance: Adherence to regulations from standards and other international standards.
• Risk management: Mechanisms for identifying and assessing risks.
• Trainings: Regular training for employees on legal requirements and internal guidelines.
• Monitoring and audits: Regular reviews and audits to ensure compliance. 
• Reporting: A reporting system, such as the Whistleblowing Channel via Eticor, for reporting violations or irregularities.
  
  

ISO 37301
ISO 37301 is an international standard for compliance management systems. It provides companies with clear guidance on how to set up, implement and continuously improve their CMS. The standard helps to systematically assess risks and ensure that all legal requirements are met. Companies that are certified to ISO 37301 prove to their stakeholders that they operate a robust and efficient compliance management system.

Conclusion
An effective compliance management system is essential to ensure legal and ethical requirements are met within a company. With a clearly structured CMS, supported by modern compliance software, companies can minimize risks and strengthen their reputation. ISO 37301 provides valuable guidance and enables companies to implement their compliance strategies efficiently.