A compliance system consists of several mandatory elements, without which its implementation may not be effective, and which include:

• a comprehensive audit,
• assessment of risk areas,
• Implementation of detailed procedures covering key risk areas,
• supervision and control of compliance with procedures – a Compliance Officer,
• employee training.

AUDIT:

The audit shall verify internal processes that are carried out in the entity to identify compliance risks and areas that should be addressed by the compliance system. The audit is based on the documents presented and interviews with persons involved in the individual processes in the entity.

ASSESSMENT OF RISK AREAS:

At this stage, the areas that are most prone to risk are identified, taking into account the specific nature and the industry in which the entrepreneur operates, and the degree of risk involved is assessed.

IMPLEMENTATION OF PROCEDURES:

Based on the results of the audit and the risk assessment performed, a set of structured and consistent policies and procedures covering various aspects of the entity’s operations is developed and implemented in the entity. These include, in particular, internal procedures covering the basic principles of division of competences and responsibilities, and external procedures covering the principles of dealing with contractors and public authorities.

SUPERVISION AND CONTROL:

In order for the implemented compliance system to fulfil its intended function and bring the intended benefits to the entity, it is necessary to maintain constant supervision of compliance with the procedures and to ensure that the Compliance Officer is able to respond to situations that pose a risk of infringing the entity’s compliance rules.

TRAININGS:

A necessary element of any compliance system is the organisation of training courses that build awareness of the applicable compliance regulations among the management as well as the employees and associates of the entity.

If you would like to find out more about the implementation of compliance systems, please contact us.  Our experienced compliance team supports the Clients on an ongoing basis in view of the changing legal and business environment for companies. Our professional experience and knowledge allow us to design an efficient and coherent compliance system as well as internal control system that takes into account the specific nature of your industry, minimises risks and guarantees legal security in all areas of your business.

Please read our other articles on compliance:

Compliance – part I – introduction