Although the term, which originates from the American legal term, is not yet enshrined in German law (it is more of a compliance codex), it is increasingly used by the German legal administration. In particular, it is used to establish the liability of directors and employees.

The liability is used in particular when there is no functioning compliance management, or one is not duly available. The mere fact that a compliance management is available is not enough, it must also be duly known and implemented within the company. If this is not the case, a compliance commissioner or compliance officer can even be held liable.

A compliance risk analysis, the determination of compliance targets, compliance risks and the establishment of compliance rules and regulations are crucial for the business, therefore.

The compliance engages in all areas of the business: from IT compliance, cooperate compliance, privacy compliance, business compliance, labour law compliance, to legal compliance.

The key is to establish compliance rules with compliance advisors, and the appointment of a compliance commissioner, or compliance officer. But even this is not enough; the board of directors, or chief executive must regularly monitor the compliance commissioner or compliance officer. The key, therefore, is a flawless compliance organisation that satisfies the compliance requirements in the enterprise.

This represents a particular challenge for mid-tier businesses. With compliance in mid-tier businesses, special attention should be paid that bureaucratic regulations don’t get out of hand. A special feeling is required for this. I will be happy to advise and consult on the compliance measures that are required in your particular case. With more than 20 years’ experience in business, associations and as a consultant, I have an intimate knowledge of the relevant compliance rules and regulations.