<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Objective:</bold> Compliance is currently seen as an integral structure of managing financial organizations and it is widely gaining popularity in other types of companies. However, despite model solutions being widespread across the world, there are still many problems due to the lack of effective business compliance management systems meeting the expectations of managers or executives. This is caused by not only incessant legislative changes, but also the multilateral character and function of compliance norms in legal practice and theory. The research purpose of this theoretical dissertation is to demonstrate that legal compliance management systems are a necessary tool for organizational risk management, both formally and practically.<bold>Methodology:</bold> This research intends to study the impact of compliance on effectiveness of administrative bodies and private sector participants as part of the methodology in the form of a theoretical article<bold>Findings:</bold> The initial hypothesis states that normative compliance first introduced in financial institutions is becoming an organizational standard in risk management, directly affecting the quality and systemic management processes.<bold>Value Added:</bold> This article discusses the theoretical meaning and functions of compliance, in terms of both EU law and one of its member states, namely Poland. The choice of Poland as the subject of the study in comparison with the EU is motivated by the fact that this year Poland enforced a rather strict system of legal norms, comprising a broad code of compliance as part of the draft act on the responsibility of collective entities.<bold>Recommendations:</bold> The system of legal compliance is a necessary mechanism of risk management in organizations, in both formal and practical sense, immediately strengthening the very traditional functions of management.</abstract>

Objective: Compliance is currently seen as an integral structure of managing financial organizations and it is widely gaining popularity in other types of companies. However, despite model solutions being widespread across the world, there are still many problems due to the lack of effective business compliance management systems meeting the expectations of managers or executives. This is caused by not only incessant legislative changes, but also the multilateral character and function of compliance norms in legal practice and theory. The research purpose of this theoretical dissertation is to demonstrate that legal compliance management systems are a necessary tool for organizational risk management, both formally and practically.Methodology: This research intends to study the impact of compliance on effectiveness of administrative bodies and private sector participants as part of the methodology in the form of a theoretical articleFindings: The initial hypothesis states that normative compliance first introduced in financial institutions is becoming an organizational standard in risk management, directly affecting the quality and systemic management processes.Value Added: This article discusses the theoretical meaning and functions of compliance, in terms of both EU law and one of its member states, namely Poland. The choice of Poland as the subject of the study in comparison with the EU is motivated by the fact that this year Poland enforced a rather strict system of legal norms, comprising a broad code of compliance as part of the draft act on the responsibility of collective entities.Recommendations: The system of legal compliance is a necessary mechanism of risk management in organizations, in both formal and practical sense, immediately strengthening the very traditional functions of management.

Legal Compliance Systems – a Necessary Mechanism in Organizational Risk Management

Journal of Intercultural Management

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Objective: Compliance is currently seen as an integral structure of managing financial organizations and it is widely gaining popularity in other types of...

Legal Compliance Systems – a Necessary Mechanism in Organizational Risk Management

Published Online: Jan 28, 2020

Page range: 81 - 99

DOI: https://doi.org/10.2478/joim-2019-0024

Keywords
compliance, legal standards, management, the risk of non-compliance

© 2019 Gabriela Stradomska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Legal Compliance Systems – a Necessary Mechanism in Organizational Risk Management

Published Online: Jan 28, 2020

Page range: 81 - 99

DOI: https://doi.org/10.2478/joim-2019-0024

Keywordscompliance, legal standards, management, the risk of non-compliance

© 2019 Gabriela Stradomska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
compliance, legal standards, management, the risk of non-compliance