Compliance: an integral part of every strategy

For a long time, the mere function of a strong compliance culture and framework within companies was perceived as a mission to avoid fines and penalties from regulators. But this picture is changing. While adherence to all policies, laws, and regulations remains at the core of any business, compliance is much more than just a regulatory burden.

The new meaning of compliance

As new technologies continue to evolve, compliance is increasingly taking on a consultative role within organisations, as recent statistics have shown. This shift is particularly evident in the areas of IT, data protection and cyber security, where the vast majority of professionals expect to be increasingly involved in their company’s overall strategy. Described as the “new face of compliance”, the trend focuses on becoming a “proactive partner to the business”.

The growing importance of compliance is underlined by the fact that 70 per cent of corporate risk and compliance professionals have seen a shift towards a more strategic approach towards it in recent years. Furthermore, in 2023, 83 per cent of risk and compliance professionals considered compliance with laws, policies, and regulations to be a very important or essential factor in their organisation’s decision-making processes. The financial impact of non-compliance is also increasing significantly. According to compliance industry statistics, regulatory fines and penalties can cost organisations up to $42 billion annually.

Working effectively with regulators

Working closely and efficiently with regulators is a proactive approach that can deliver significant business benefits. By constantly engaging with regulators, Deutsche B?rse Group has been able to consistently drive innovation, as seen in our journey to move business processes to the cloud – securely and incrementally.

A strong compliance framework is consequently not just relevant for world-class business conduct; it is also a driver for continuous business growth. It can lead to the development of new products and services that not only meet our customers’ needs but also comply with regulatory requirements. By having both clear guidelines and boundaries, we can innovate with confidence, knowing that we are operating within legal and ethical parameters.

In this way, compliance is much more than just about avoiding penalties; it is about creating a culture of integrity and accountability that is put to life by all our colleagues around the globe. It in turn fosters confidence among our clients, investors, and partners, and supports us in fulfilling our purpose, to create trust in the markets of today and tomorrow.