23 FEB 2017

What is corporate compliance?

CCorporate compliance is effective organization and management programs that include the appropriate monitoring and control measures to prevent offences committed by legal persons.

These internal rules help companies to avoid paying fines and tax penalties. In accordance with current Spanish regulation, companies are required to hire legal advice to implement a corporate compliance program to prevent any corporate crime.

Five essential elements of a corporate compliance program

1.- Leadership. If a company wants to carry out a successful compliance program it must be built on a solid foundation of ethics and it must have high-ranking compliance officers with the authority and resources to manage the program on a day-to-day basis.

2.- Risk assessment. A company designs a risk assessment to provide a big picture of its compliance obligations and then identify areas of high risk so that it can prioritize its resources to tackle these high risk areas first.

3.- Standards and Controls. In general every company has three different levels of standards and controls: code of conduct; standards and policies; procedures. Companies should ensure that compliance standards are implemented.

4.- Training. It is another pillar of a strong compliance program. It is very important to train employees, third parties and officers on laws, regulations, prohibited conduct and corporate policies.

5.- Oversight. Any company should monitor employee behavior and checks whether They are staying with the compliance program. Monitoring is a responsibility to reviewing and detecting compliance programs in real time and then reacting quickly to remediate them.

To implement corporate compliance programs efficiently and effectively your company needs legal professionals as Fortuny Legal, an organization specialized in corporate compliance, that advises corporate clients about a Corporate crime prevention model.