Write short notes on Compliance management.

Answer 5(b)(i) Compliance Management A compliance management system is the method by which corporates manage the entire compliance process. It includes the compliance program, compliance audit, compliance report etc. and in other words it is called compliance solution. The compliance program consists of the policies and procedures which guide in adherence of laws and regulations. The compliance audit is independent testing of the level of compliance with various laws and regulations applicable. The established compliance management system is a supporting system of risk management as it reduces compliance risk to a great extent. Section 134(5)(f) of the Companies Act, 2013 provides that the directors of the company should devise proper systems to ensure compliance with the provisions of all applicable laws which shall be adequate to the size of the company and which should also operates effectively. To ensure an effective approach to compliance, the participation of senior management in the development and maintenance of a compliance program is necessary. They should review the effectiveness of its compliance management system at periodic intervals, so as to ensure that it remains updated and relevant in terms of modifications/changes in regulatory regime including acts, rules, regulations etc. and business environment