Compliance Management System
A compliance management system (CMS) is a system designed to support and ensure that all applicable laws, rules and internal standards or guidelines are observed. The compliance solutions, as with a system or a platform, help both individually and jointly in preventing and combatting risks, malpractice and white-collar crime as well as evaluating business partners and approving benefits.
Companies and organisations above a certain size find it very difficult to map all these processes and workflows manually. It is therefore important that compliance managers have a system at their disposal which enables them to easily and efficiently map the receipt, processing and documentation of a wide range of compliance topics. Risks and measures, such as business risks, white-collar crime, evaluation of business partners and the approval of benefits should be easily documented and combatted in a secure system.
It is also interesting that a CMS can reduce possible fines for companies. The decisive factor here is “effective design”, which means that the compliance management system must be designed to avoid risks and legal violations, and rules must be optimised in such a way that future violations and breaches are much more difficult (BGH 9.05.2017, 1. StR 265/16 para. 118).
See Deloitte GmbH at: https://www2.deloitte.com/de/de/pages/audit/articles/bgh-urteil-compliance.html (accessed on 03.06.2020)