Efficient compliance management systems (CMS) exist primarily to protect one’s business and are becoming an increasingly crucial factor for many small and medium-sized firms.
GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: Businesses and their governing bodies often find themselves liable for violations of existing laws that occur from within the company. Efficient compliance management systems can prevent these kinds of infringements from happening in the first place. For this reason, effective compliance systems should first and foremost be seen as a means of protecting one’s business.
Compliance is an important topic not only for firms operating internationally, but is also becoming more and more important for small and medium-sized businesses. With companies potentially facing liability for violations committed by their employees, this can pose an existential threat particularly to small and medium-sized companies, e.g. if claims for damages are asserted against them. That is why the primary function of an efficient compliance management system is not to monitor and check but to protect the company and in doing so preserve jobs.
In order to be able to efficiently implement a compliance management system, it ought to be tailored to the specific needs of a given firm and its effectiveness regularly checked. One of the key strengths of small and medium-sized businesses is their flexibility, and this should not be compromised by a CMS. Instead, the system ought to account for and accurately reflect the different requirements expected of different people within the company, and ultimately be tailored to each individual business. It is then possible for these systems to monitor compliance with the relevant rules and legal regulations without disrupting business operations.
An effective compliance system is indispensable for businesses nowadays, especially those which maintain international business relationships, as it is vital to observe the various national laws and regulations of other countries as well when it comes to cross-border dealings. For many small and medium-sized businesses, this represents an impossible task. Thus, an effective compliance system also serves to prevent unintentional legal violations as well as any damage or loss to the company.
Lawyers who are competent in the field of commercial law can assist in implementing and reviewing a CMS.
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