Compliance Management Systems Research Articles

Construction of Access Rules for Data Transaction Subjects

At present, data exchanges have been set up in various provinces and cities in China, but China has not yet established uniform rules for data transactions. As an important threshold to ensure the security of data transactions, it is of great significance to construct access rules for data transaction subject. By building access rules for data transaction subjects, data transaction rules will be gradually improved, which is also a positive response to China’s policy requirements. Adhering to the principle of ensuring data security and promoting the release of data value, this paper analyzes the existing rules of data exchanges and explores the construction ideas of access rules for data transaction subjects. Data transaction subjects can be divided into data providers and data demanders. In addition to examining the basic situation of the subject of the transaction, a more detailed examination is needed. For data providers, it is necessary to review whether they have any recent data-related violations and whether they have a sound data compliance management system. For data demanders, it is also necessary to review their data-related breaches, cybersecurity protection capabilities, and data security protection capabilities.

An improved cloud-based business process compliance management system using a user-centered approach

An improved cloud-based business process compliance management system using a user-centered approach

Modifying supply chain strategies to address regulatory compliance challenges: Lessons from South Eastern Nigeria

Regulatory compliance was an essential component of contemporary corporate operations, guaranteeing conformity to laws, rules, and standards controlling different aspects of organisational activity. Businesses operating in South Eastern Nigeria encounter complex obstacles to regulatory compliance, such as currency depreciation, the dynamic nature of data protection legislation, and the increasing global integration of supply chains. This report offers valuable insights into the intricate process of adjusting supply chain strategies to address regulatory compliance difficulties in South Eastern Nigeria. The paper examined regulatory compliance difficulties and their effects on supply chain dynamics by conducting a thorough literature review and analysing current research. Devaluing currency led to changes in import/export levies, tariffs, and customs procedures, which need quick and adaptable actions to ensure compliance and competitiveness. In addition, the digitalization of corporate operations intensified the issues of ensuring data security and privacy compliance. This necessitated investing in technological solutions and adopting proactive risk management strategies. Despite these difficulties, firms in South Eastern Nigeria adopted a range of tactics, such as implementing compliance management systems, diversifying suppliers and markets, and engaging with regulatory agencies, to successfully modify their supply chain strategies. The results emphasised the significance of taking proactive actions, engaging in strategic planning, and fostering cooperation among relevant parties to effectively address regulatory compliance obstacles and maintain competitiveness in the global market. Keywords: Adherence to regulations, Techniques for managing supply chains, Depreciation of currency, Safeguarding data, Region of South Eastern Nigeria.

AI-driven corporate governance: a regulatory perspective

ABSTRACT The use of AI-driven or AI-assisted systems in corporate compliance is a novel topic in the business and management literature, only marginally considered by legal academia. While some scholarly pieces have explored the use of artificial intelligence (AI) systems to support compliance in the financial sector (eg, for anti-money laundering purposes), the legal implications of deploying AI systems to fulfil corporate compliance tasks has not yet received the attention it deserves. This article approaches the use of AI in corporate compliance and governance through the eyes of a regulator. Its aim is to present how the use of AI compliance systems within corporations can be leveraged by the entities tasked with ensuring the good governance of firms. Concretely, it explores a not-too-distant future, where some of the regulation of corporations can be driven by a mandate to systematically deploy Automated Compliance Management Systems (ACMS) within corporations as a way to enforce and monitor good governance. The article suggests that several of the limitations that regulators are currently facing to ensure the prevention of fraud, corruption or other forms of corporate non-compliance, could be addressed if regulators offered firms the possibility of being continuously monitored by an automated AI-driven system which systematically tracks the corporation’s data footprint. We then explore what is required for such a regulatory approach to be feasible and effective. In our view, regulators must first establish the standards of reliability for those systems (ie, the legal meaning of ‘red flags’ issued by the system of potential violations) and, second, actively supervise how companies react to the outputs of those systems (ie, what companies do when a red flag is raised by the system). In the final part of the article, we offer a more concrete example to the reader. We suggest it could be possible to test such an approach in Australia through regulatory sandboxes for the mining sector, concretely, to monitor compliance with antibribery obligations overseas.

Enhancing financial reporting accuracy and compliance efficiency in legal firms through technological innovations

This review paper explores the transformative impact of technological innovations on financial reporting accuracy and compliance efficiency within legal firms. It examines the current challenges legal firms face in maintaining accurate financial records and adhering to regulatory requirements, highlighting issues such as manual errors, complex transactions, and evolving regulations. The paper delves into the roles of automation, artificial intelligence (AI), data analytics, and blockchain technology in addressing these challenges, demonstrating how these tools can enhance financial precision, transparency, and operational efficiency. Additionally, it discusses the future trends in regulatory technology (RegTech), integrated compliance management systems, and real-time monitoring and reporting, emphasizing their potential to streamline compliance processes further. Practical recommendations are provided for legal firms to adopt and integrate these emerging technologies successfully. The paper concludes by underscoring the critical importance of technological innovation in enhancing legal firms' financial and compliance capabilities, ensuring they remain competitive and compliant in a dynamic regulatory environment. Keywords: Financial Reporting, Compliance Efficiency, Legal Firms, Artificial Intelligence, Blockchain Technology, RegTech.

Research on Enterprise Legal Service Strategy Based on Compliance Management Optimization

With the background of enterprise compliance management, this paper discusses how to improve the level of enterprise legal service and reduce enterprise legal risks by optimizing the compliance management system. It aims to analyze the current situation and existing problems of enterprise legal services through the analysis of the importance of compliance management. Furthermore, it delves into the case of enterprise legal service strategy based on compliance management optimization to verify the effectiveness and feasibility of enterprise legal service strategy.

The effect of tone, signature, and visual elements in compliance management systems disclosures on financial analysts’ decisions

Numerous corporate scandals, in conjunction with managerial misbehavior, demonstrate both the need for effective compliance management systems (CMS) and the relevance of compliance reporting. Disclosure elements are a major differentiator when reporting on CMS. This study investigates whether the tone, top managers’ signatures, and visual elements affect financial analysts’ perceptions and decisions. We use several theories from cognitive psychology which suggest that positive tone, the presence of signatures, and the combination of textual and visual elements can induce more favorable perceptions of compliance disclosure. In a 2 × 2 × 2 between-subjects experiment with 148 financial analysts from Germany, we manipulate tone (positive vs. negative), top managers’ signatures (present vs. absent), and visual elements (present vs. absent) to measure analyst perceptions of reliability, understandability, and usability, as well as credit risk, purchase, and recommendation decisions. We then sum up these dependent variables to create two new variables, perceptions, and decisions. Our results suggest that negatively toned compliance disclosure positively affects financial analyst perceptions, unless it is combined with a visual, as well as their decisions, unless it is combined with both a signature and a visual element. Additionally, signatures and a visual element have an overall positive effect on analyst perceptions. The study’s results confirm the relevance of disclosure elements in compliance reporting, which should be of interest to preparers, users, auditors, and regulators of compliance disclosure.

Construction of Enterprise Financial Compliance Management System in the Context of Digital Taxation

In the context of digital taxation, constructing an enterprise financial compliance management system is an important means to ensure compliance with tax regulations, optimize tax management, and improve economic efficiency. As a crucial component of modern tax administration, "digital taxation" imposes new requirements on enterprise financial compliance management. This paper aims to explore how to construct an effective enterprise financial compliance management system under the backdrop of "digital taxation" to enhance the quality of accounting information and financial compliance, thereby reducing financial and tax risks and promoting the sustainable development of enterprises.

A comprehensive review of safety audits: ensuring workplace safety and compliance in Zimbabwe

Safety audits are systematic evaluations of an organisation’s safety management system, policies, procedures, and practices to identify potential hazards and assess compliance with relevant regulations and standards. This article provides a comprehensive review of safety audits, focusing on their role in ensuring workplace safety and compliance in Zimbabwe. A comprehensive search was conducted across various databases, including PubMed, Science Direct, Scopus, Google Scholar, and Sage Publications, to gather relevant articles. The relevance of the literature to the topic being studied was assessed by utilising abstracts and key words such safety audits and safety standards. The article examines multiple research studies carried out on the topic and presents a comprehensive summary of the present condition of safety audits in Zimbabwe. The findings indicated that the objective of safety audits is to proactively identify areas for improvement and implement corrective actions to prevent accidents, injuries, and occupational illnesses. The study indicates types of safety audits including compliance audits and management system audits. The article delves into the key components of safety audit processes, benefits of safety audits and challenges and limitations of safety audits in Zimbabwe. The article concludes by emphasising the importance of continuous improvement in safety audits.

Research on the Construction of Enterprise Compliance Management System in the Context of Deep Learning

Abstract Migration learning is a kind of deep learning that plays an important role in risk prediction and warning. In this paper, we use the Triplet-loss representation learning technique to map data samples of the same category to adjacent spatial regions, map data samples of different categories to different spatial regions, and add domain adaptive computation to complete domain adaptation. XGBoost performance is also optimized to improve the prediction results. After completing the risk prediction model construction, this paper also incorporates indicator weights to propose a risk warning model based on a weighted knowledge graph. The analysis found that the model accuracy of the compliance risk prediction model is 1.155% higher than that of two traditional prediction models on average, and the indicators of accuracy, F1-score, and AUC are all over 0.99, which indicates that it has high accuracy. After applying the optimized risk management system in an enterprise, it is found that the weight of the indicators of the enterprise’s compliance management system reaches 25.71%, the combined weight of the legal audit system and the risk prevention and control mechanism is 16.23% and 14.10%, respectively, and the combined weight of the two indicators of the appraisal and evaluation of the performance of the compliance management and the accountability for the violation of the law exceeds 8%. The weights of the indicators related to the degree of business standardization are close to 16.51%, indicating that the enterprise’s daily production and operation activities are standardized and orderly, and the perfection of the compliance management system is in line with the real situation of the enterprise. It can be seen that the risk management system makes accurate judgments on the compliance risk of the selected enterprise, which reflects the feasibility of the application of the new model.

Leadership as Critical Success Factor of Total Quality and Human Resource Management in Sports Organizations

This study presents a model inspired by the Burke-Litwin causal model of the organization, suitable to encompass both individual and organizational performance and aligned with the proposal of a structure explicitly adapted for sports organizations from De Knop. The model was tested on senior management in 131 tennis clubs registered in Serbia. Although some scholars are against the implementation of common management in sports organizations, the results show that well-structured total quality and human resource management processes genuinely increase the effectiveness of sports organizations. Our findings show that critical success factors of this approach were complexity-based leadership, clearly defined mission and vision of the organizations, informal communication paired with unambiguous policies and comprehensible procedures, and broader operational responsibilities given to the employees. The levels of legal compliance and reward management systems were the main weaknesses of these sports organizations.

COMPLIANCE CULTURE IN A LARGE COMPANY

This article proposes an intervention for a large company located in the interior of São Paulo – SP, where the topic addressed is compliance with an anti-bribery management system and the importance of implementing ISO 37001. Compliance aims to minimize risks and guide the company’s behavior in the market in which it operates. It is an internal control system that clarifies and offers security to those who use it. ISO 37001 is a compliance and anti-bribery management system that aligns strategies and processes. Based on this, we conclude the importance of ISO 37001, and how much it adds to the company’s image, improving its reputation.

Whistleblowing Procedures as Part of the Compliance System and Culture of the Organization

Abstract The whistleblower system assumes that an element necessary for proper functioning about an organization is to see irregularities occurring in it. For this reason, whistleblowing and follow-up internal investigations occupy a central place in the organization’s compliance management system and an important role in the organization’s culture. These two areas constantly complement each other. However, compliance systems seem to be a broader concept, where the organization’s culture is part of it. The culture of an organization represents the habits, traditions, and customs of organizations, which are not always written down. It is often referred to as the “company atmosphere.” Compliance is a system of procedures and rules, most often written down, which define procedures for dealing with specific situations, rights and obligations of employees, co-workers, or contractors. The regulations that emerge from the compliance system derive from laws, industry regulations, ethical norms, including the culture of a particular organization. Well-developed and implemented whistleblowing procedures that become part of the organization’s culture for good influence the existence of a highly developed compliance system that guarantees the multifaceted success of the organization.

Compliance Risk Assessment in the Banking Sector: Application of a Novel Pairwise Comparison-Based PRISM Method

Up-to-date compliance management uses a risk-based approach based on international standards. In addition to techniques and practices, implementing compliance measures is determined by principles and culture. Compliance risk assessment is an evolving field in theory and practice. Compliance risk management is complex and highly dependent on the decisions of experts. This article presents a new compliance risk assessment method based on a commercial banking case study. In the study, the Guilford method is used to extend the Partial Risk Map (PRISM) assessment technique, and the steps of the proposed pairwise comparison-based PRISM method are described in detail. Since risk assessment is critical to the operation and development of compliance management systems, the proposed risk assessment method involves testing individual evaluations’ consistency and the results’ robustness. The best-fitting and outlier experts can be identified based on testing the impact of individual expert rankings on the aggregated ranking. The main finding is that top partial risks can be identified by applying the proposed pairwise comparison-based PRISM technique; therefore, possible optimal risk mitigation strategies and measures can be designed.

Compliance Standards in Continental Europe – Same, Same but Different!?

Abstract This article deals with the ever-present hot topic of compliance and the related standards for a compliance management system (cms) in Continental Europe. It covers the existing legal regulations, the current case law, and the latest developments in Germany, France, and Italy with regard to the requirements for an effective cms. It also takes a look at the criteria that top management must fulfil in order to meet individual compliance requirements – and minimize the risk of liability. In addition, the authors also put the new iso standard 37301:2021 under the microscope and identify a common ground between the various national positions.

Corporate Compliance Non-prosecution Reform in China: Who Should be the Target of Application?

Along with the widespread use of deferred prosecution agreements in criminal justice in several countries around the world, there is a new trend of deferring prosecution in corporate criminal cases for subjects who meet the conditions. In order to improve the modernization of enterprises and strengthen their ability to deal with criminal legal risks, China introduced a corporate compliance management system in 2007. In 20202, under the leadership of the Supreme People's Procuratorate, China began to explore the reform of "corporate compliance non-prosecution". In the reform of corporate compliance non-prosecution, "double non-prosecution" should be established in the context of China's corporate structure and judicial background. Since the responsibilities of the enterprise and the individual can be separated, compliance non-prosecution can be adopted for enterprises in large corporate criminal cases. Since the responsibilities of the enterprise and the entrepreneur are "combined into one," prosecutors can apply a non-prosecution after plea of guilty to the entrepreneur in micro and small enterprise criminal cases.

ОСОБЕННОСТИ РЕГУЛИРОВАНИЯ АНТИМОНОПОЛЬНОГО КОМПЛАЕНСА

The article examines the peculiarities of antitrust compliance regulation. Currently, compliance risks occupy an important place in the activities of companies, since they have a high degree of danger. The compliance and risk management system should be implemented through the risk management unit not only in the credit and banking sectors, but also in entities operating in other areas. Control procedures in the field of antimonopoly compliance at the moment in Russia are legally located only at the initial stage of development, it is necessary to improve and implement the compliance function in different areas.

Implementation of an integrated approach of the compliance system for the socio-economic development of the company

To ensure compliance with the law and the obligations assumed, the company needs a management system that will ensure this compliance. Compliance is an integral part of the management system and ensures compliance with the regulatory environment, the norms of corporate culture and business ethics; identifies risks of non-compliance of organizations and employees with legal norms, established regulatory rules and standards; carries out measures to eliminate the risks of applying legal sanctions or regulatory sanctions, significant financial loss or loss of reputation as a result of non-compliance with business regulations. In an organization, compliance is applied through the implementation of a compliance management system, which is a complex of interrelated and interacting elements of the organization to ensure its compliance with the requirements of the regulatory environment and achieve its goals. In the article, the author presented how to implement a compliance system in an enterprise.

Enterprise data security compliance strategy: A study based on typical cases

Data security compliance management is the fundamental premise that data application does not infringe on the interests of countries, enterprises and individuals. It is an important foundation for realizing the driving role of data elements. Based on the data security compliance management practices of typical enterprises at home and abroad, this paper summarizes the excellent practices of leading demonstration enterprises, and proposes six key strategies for enterprise data security compliance, including classification of typical data application scenarios, analysis of key links of data security compliance application, formulation of data security compliance application management system and standards, optimization of data security compliance application process mechanism, formulation of whole-process management measures of data security compliance, and improvement of data security compliance guarantee mechanism, as to provide references for the research and construction of enterprise data security compliance management system.

Whistleblowing as a tool for HR compliance management system – survey report

Purpose: To present an excerpt from author’s own study conducted among HR professionals, managers and directors in December 2022 in Poland as part of the research project 'HR Compliance in HR Risk Management'. The aim of the article is to characterise whistleblowing as a tool of the HR Compliance Management System and to identify differences in the evaluation of the process of reporting wrongdoing and undesirable behaviour in organisations depending on the job position of the respondents, the size of employment in the company, the form of ownership and the industry. Design/methodology/approach: A proprietary survey questionnaire was developed. The study was carried out using a diagnostic survey method. A computer-assisted web interview (CAWI) and a computer-assisted telephone interview (CATI) were used. Statistical methods were used to analyse the survey results, including chi-square test with Yates’ correction, Kruskal-Wallis test. Findings: Whistleblowing is an instrument for detecting wrongdoing in organisations, being one of the three pillars of HR Compliance and an important tool of the Compliance Management System. Differences in the evaluation of the various elements of the whistleblowing system have been diagnosed. One-third of the respondents do not have a clear opinion on the evaluation of a well-established whistleblowing system. In medium-sized companies, respondents' rating is higher than in other organisations in terms of evaluating internal channels for whistleblowing, as well as protecting whistleblowers from retaliation. The HR department is the entity empowered to receive and coordinate the handling of whistleblowing reports in the workplace in public organisations, which stand out with the highest average rating of providing anonymity to the whistleblower and granting protection to the whistleblower against potential retaliation. Differences in rating by job position relate to issues of organisational culture, employee confidence in the proper functioning of the company's whistleblowing system, the scope of reportable wrongdoing within the company, the preparation and provision of internal channels for whistleblowing. On average, professionals rate the whistleblowing system in organisations lower. Research limitations/implications: The research sample was 205 units. The survey was not randomised and therefore the results developed are not representative and do not allow generalisation and drawing conclusions about the phenomenon on a national scale. Practical implications: The results obtained from the research may be useful for business owners, managers, human resources and compliance professionals who are responsible in organisations for implementing systemic whistleblowing solutions in the workplace. Social implications: Building awareness of whistleblowing and its key role in the HR Compliance management system in companies. Originality/value: The article is of cognitive value for the development of management and quality science in the area of human resource management and organisational risk management. It contributes to the development of knowledge on whistleblowing in companies from a management perspective. Keywords: whistleblowing, whistleblower, compliance risk, HR Compliance, personnel risk, compliance management system. Category of the paper: Research paper.