There has been more compliance legislation written into law over the past decade than in the previous century. Compliance operates at three distinct levels: The type that applies to industry specific sectors; The broad national or international laws and regulations that apply to everyone; The internally defined policies and practices that organisations need in order to maintain a sense of order over business management.
Consequently, compliance is everywhere and is increasingly finding its way to the Director’s door. In the past, compliance would usually be delegated to operational managers as part of their ongoing duties.
Today, that responsibility starts and frequently stops with the Directors. There is no mystery as to why this should be the case. The Enron, Tyco, WorldCom and Parmalat fraud scandals serve to bring compliance to the forefront of boardroom agendas. In each case, there was a clear connection between what the business did and the accounting of those activities.
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