• GDPR: Every company that processes personal data in the EU must comply with this EU regulation. From the smallest agency to the global group of companies, data protection is a key compliance element under the GDPR.
• NIS2: This EU directive will be legally implemented in Germany in October 2024. It primarily affects a number of providers of critical services such as energy suppliers and transportation businesses. NIS2 sets new standards for the security of their network and information systems.
• IT Security Act 2.0: This law focuses on operators of critical infrastructures. These include, for example, healthcare providers, financial institutions and supply companies. They are under obligation to make their IT systems even more resistant against cyber attacks.
• ESG regulations: These apply not only to financial institutions that invest in sustainable projects, but also to all companies that are committed to acting in an ethical, socially responsible and environmentally responsible manner (``Environmental Social Governance``, ESG).
• HIPAA (Health Insurance Portability and Accountability Act): In the USA, this law is essential for the protection of patient data in the healthcare sector.
• PCI DSS (Payment Card Industry Data Security Standard): This is a globally established standard for all organizations that process, store or transmit credit card transactions.

Responsibility of the Management Board

The company Management is responsible for strict compliance with all legal regulations. However, it can also delegate this responsibility to someone who is knowledgeable about industry-specific regulations and knows which technical measures are both necessary and appropriate. If available, the IT department or an IT administrator is therefore often assigned to these tasks. The designated person then coordinates the development of IT compliance policies with the company management.

Compliance with national and international regulations

Internationally operating companies must be compliant in all countries in which they are active. This is because violations of the law abroad - for example by subsidiaries - can have group-wide consequences.

Consequences of non-compliance

Non-compliance is dangerous and financially risky. Not complying with the relevant regulations can have serious consequences. These include::

• Financial consequences: Significant financial sanctions and compensation payments
• Loss of reputation: Negative public image, loss of customer trust
• Operational disruptions: Possible impairment of operational processes due to non-compliance

The need for a CMS

Among other things, a CMS is necessary to meet the requirements of the German Corporate Governance Code (DCGK) and the specific needs of the company.

Adapting and being efficient

A compliance management system must be flexibly adaptable to technical and legal changes in order to ensure operational excellence and, not least, to justify the financial investment. A compliance officer is essential in order to react immediately to compliance non-compliance and to ensure the current status of the CMS.

To avoid compliance violations and fines, a compliance strategy should set priorities and take basic laws and regulations into account from the very start. In addition, all employees must be involved in the compliance processes: Compliance is not the only responsibility of the compliance officer.

Implementing compliance - the most key steps:

Risk identification: Identifying all regulations and laws relevant to the company, including the types of risks to which it may be exposed

Internal audits: Conducting internal audits to evaluate the effectiveness of the security and compliance strategy

Compliance roadmap: Creating a roadmap that defines which compliance regulations need to be addressed

Employee training: Ensuring that employees are aware of the latest rules and regulations and are able to apply to them