Evolution and strategic vectors for the development of the compliance function in the system of ensuring the financial sustainability of enterprises

Abstract

In the modern business environment, entities are increasingly faced with increasing regulatory burdens, increased requirements and increased market sensitivity to any risks. In view of this, compliance control is currently gaining strategic importance as a tool for combating financial and economic losses and ensuring long-term sustainable development.

The aim of the work is to structure compliance control as a holistic tool that helps minimize financial and economic risks and improves the stability of enterprises in conditions of uncertainty and digital transformation.

The methodological basis is made up of general scientific and special methods of cognition, namely: retrospective analysis, systematization of regulatory requirements and standards, structural and functional analysis, cause-and-effect analysis.

It is proven that the transformation of compliance control from the beginning of its application to the evolutionary changes at the present time is supported by a complex and systemic nature and is currently expanding the boundaries of its influence to the components of the legal, financial, organizational, economic and technological activities of enterprises. It is determined that the shifts in the development of compliance are interconnected with crisis situations in the economic space and each subsequent stage caused by the challenges of uncertainty expands the functional parameters of compliance as a response to the challenge. A cascade model of the impact of compliance violations on the financial and economic results of enterprises has been developed. The direct dependence and manifestation from direct (quick) costs to indirect (long-term) consequences has been confirmed. A methodological basis for assessing the consequences of compliance risks through established economic and financial indicators (such as return on assets - ROA, liquidity indicators and EBITDA level) has been presented, which proves a direct correlation of possible costs for the enterprise. In order to reduce the impact of compliance violations on the activities of enterprises, it is proposed to apply established methodological tools for proactive identification of risks and specific threats, covering anti-corruption, regulatory, AML, ESG risks, as well as digital threats and data security risks. It is seen that this approach will increase the quality of internal control and the adaptability of management decisions at the enterprise. As a result, it is argued that the modern concept of compliance control has the properties of a cross-cutting function regarding corporate governance and the formation of preventive actions to ensure the financial and economic stability of the enterprise.