Compliance function aims to ensure that operations comply with applicable laws, standards and regulations. We help in establishing the compliance function and tailoring its operating model to the profile of the organization. We support in the assessment and improvement of the existing solutions, including the development of internal regulations.
What is Compliance and why is it so important?
Compliance Management System is a set of activities performed in a structured manner by the organization in order to ensure its compliance with laws and regulations.
In ever-changing regulatory environment, stakeholders, governance bodies and management teams should be provided with an appropriate level of assurance that the organization's activities comply with applicable regulations (internal and external). Failing to ensure compliance may result in the incurring additional costs related to late adjustment to the regulations or financial penalties, increase of the risk of reputation loss or even personal liability of the management executives.
Challenges associated with the compliance function in an organization
Cooperation and coordination of activities
The role of the compliance function is to ensure meeting objectives of the compliance risk management, while the responsibility for compliance with applicable laws, internal regulations and market standards lies with all the employees and managers. Hence, it is important that the compliance function cooperates effectively with all internal units in the organization, that are responsible for the implementation and management of the business processes. The compliance function should also coordinate its activities with the internal audit function, which is responsible for giving assurance that organization's objectives are being achieved in a proper manner.
Compliance risk monitoring
One of the elements of the compliance risk management process is monitoring of the risk exposure level and risk profile, considering impact of the implemented internal controls, and changes in the regulatory environment. The compliance function is responsible for analyzing how internal control, that are supposed to keep the risk at the acceptable level, are implemented and performed.
Awareness and compliance culture
The key issues in creating an effective compliance management system is involving all employees in promoting good practices related to compliance (maintaining compliance culture). For the management this means the development of the procedures and rules of conduct, as well as the need to bring awareness about relevant regulatory requirements and the risks associated with them, e.g. through workshops or trainings. The way the management teams set the tone affects employees’ attitude and behaviors, that are pivotal for creating the compliance culture.
Benefits for the client
Support by experts with specific skill sets
Support in development of the compliance management system corresponding to the organization’s needs
Level and structure of control reflecting compliance risk exposure and profile
KPMG compliance advisory services
The efforts of the compliance function should focus on ensuring that the operations comply with applicable laws, regulations as well as internal by-laws and standards. Regardless of whether there is separate compliance function or is a part of the legal department, it is essential to properly define its responsibilities, shape its structure effectively as well as ensure adequate level of awareness of the compliance issues among the employees and managers.
We support our clients in establishing and improving their compliance functions, considering recommended market practices, regulatory guidelines and legal requirements. We help in aligning the compliance management system with the organization’s profile. We provide support in evaluating and improving of the adopted solutions, including the development of internal regulations, policies and procedures, guidelines for risk assessment, monitoring and reporting, as well as promoting compliance culture though dedicated trainings and workshops.
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