Financial compliance as a tool for improving financial architecture

Abstract

The article discloses the concept of «compliance» and considers theoretical approaches to building a system of compliance control. It provides standardized rules in the field of compliance, which are relevant for all areas of business. Strategies for implementing compliance in companies are defined. Risks in case of non-compliance with the compliance strategy are analyzed.

Compliance forms the foundation of control of any economic entity. In this sense, it is seen as an inevitable component of the management system, one of the most important parts of which is the system of internal control. Compliance with laws, regulations and standards in the field of compliance usually concerns issues such as compliance with appropriate standards of conduct and management of conflicts of interest. Currently, compliance with standards, aka «compliance», is a line of professional activity introduced into organizations by large Western companies. Compliance control as an effective tool for minimizing risks confidently reaches the main positions in the management of modern firms, not only financial institutions, but also companies in the real sector of the economy. The level of non-financial risks has been constantly growing since the beginning of the 90s, and with it the value of compliance control for the business is increasing every year. Gradually, there is an understanding that compliance is an integral element of the corporate governance system. Compliance serves as the basis for a perfect process of management making fundamental decisions, respectively, contributes to achieving the established strategic and tactical goals of the economic entity.