THE ESSENCE AND DEFINITION OF COMPLIANCE RISK

Abstract

In the practice of an industrial enterprise, the concept of compliance is closely linked to the management / control system in the organization, as well as to the risks of non-compliance, non-compliance with the laws, regulations, rules and standards of supervisory authorities, industry associations and organizations, codes of conduct, etc.The purpose of the article is to investigate the theoretical and methodological basis of compliance risk and the possibilities of using this category in the organizational and economic activities of an industrial enterprise in order to ensure its stable and efficient operation.The concept of compliance risk with respect to industrial sphere is not enshrined in the Ukrainian legislation, but it is successfully used in banking and can be successfully adapted to the characteristics of an industrial enterprise. For industrial enterprises, it is proposed to define compliance risk as the risk of the application of legal or regulatory penalties, material financial loss, loss of market share or loss of reputation by an enterprise as a result of non-compliance with laws, regulations, rules, standards of self-regulatory organizations or external and internal codes or regulations. concerning production and business activity. The compliance function draws attention to many different aspects of compliance risks: from financial risks to reputational risks, from corruption to the code of conduct of employees, and this comprehensive approach allows for the most effective monitoring of the enterprise activity and to make informed and thoughtful decisions, create situations where the risk of compliance risk is minimal. In the article it is proved that if an enterprise plans to enter the international market, work with the compliance function is a prerequisite for development and further cooperation, since many foreign partners work exclusively with organizations that comply with international standards, including in the work with compliance risk control.