Define compliance. What is the difference between compliance and conformance?

CS Professional · Governance, Risk Management, Compliances and Ethics · PYQS · December 2021
Define compliance. What is the difference between compliance and conformance?

Answer & Explanation:

OECD defines compliance as the act of adhering to, and the ability to demonstrate adherence to mandated requirements defined by laws and regulations, as well as voluntary requirements resulting from contractual obligations and internal policies. The International Compliance Association has defined the term compliance as the ability to act according to an order, set of rules or request. Compliance mainly operates at two levels: Level 1 - compliance with the external rules that are imposed upon an organisation as a whole. Level 2 - compliance with internal systems of control that are imposed to achieve compliance with the externally imposed rules. The difference between compliance and conformance is as below: Compliance Conformance Forced adherence to a law, regulation, rule, process or practice. Voluntary adherence to a standard, rule, specification, requirement, design, process or practice. Applies to laws and regulations that one has no option but to follow or face penalties. Such regulations may potentially be productive for society but don't necessarily contribute to an organization's goals. Applies to strategies and plans that are adopted to be more productive or to improve quality.

Topics: Compliance Management

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