Introduction

As organisations face increasing legal, regulatory, and ethical expectations, the role of the compliance department has never been more critical. ISO 37301:2021, the international standard for compliance management systems (CMS), underscores the importance of having a dedicated compliance function to design, implement, and oversee compliance efforts. This blog explores the strategic value of the compliance department and how ISO 37301 supports its development.

Why a Compliance Department Matters

A compliance department serves as the backbone of an organisation’s efforts to uphold laws, internal policies, and ethical standards. It ensures that compliance is not treated as an afterthought but as a strategic function aligned with business goals.

• Key reasons for having a dedicated compliance department include:
• – Monitoring regulatory changes and ensuring organisational readiness
• – Providing guidance and training to staff on compliance matters
• – Conducting risk assessments and audits
• – Investigating potential breaches and recommending corrective actions
• – Building a culture of integrity and accountability

ISO 37301 and the Compliance Function

ISO 37301 highlights the need for clearly defined roles and responsibilities (Clause 5.3) and expects the organisation to allocate adequate resources (Clause 7.1) to the compliance function. The standard recognises that the compliance department should be:

• – Independent and free from undue influence
• – Appropriately resourced with skilled personnel
• – Empowered to report directly to senior management or the board

Core Responsibilities of the Compliance Department

1. A well-structured compliance department typically oversees the following activities:
2. 1. Developing and maintaining the compliance management system.
3. 2. Advising on applicable legal and regulatory obligations.
4. 3. Conducting compliance training and awareness programs.
5. 4. Investigating incidents and managing reporting mechanisms.
6. 5. Reviewing policies and recommending improvements.

Example: Insurance Company

In a large insurance company, the compliance department plays a critical role in navigating complex regulatory requirements. It works closely with legal, risk, and operational teams to ensure licensing, anti-money laundering (AML) obligations, and customer data protection measures are consistently met. The head of compliance reports directly to the board, ensuring visibility and oversight.

Conclusion

The compliance department is essential to building and maintaining trust, both internally and externally. ISO 37301 provides a framework to ensure this department is empowered, structured, and aligned with organisational objectives. By investing in a strong compliance function, organisations demonstrate their commitment to ethical conduct and sustainable success.

For further information and to book your ISO37301compliance management systems survey please contact: Marcus J Allen at Thamer James Ltd. Email: [email protected]

Marcus has twenty years’ experience in delivering Governance, Risk and Compliance solutions to over two hundred organisations within the UK. Marcus holds the respected Diploma in Governance, Risk and Compliance from the International Compliance Association and holds a master’s degree in Management Learning & Change from the University of Bristol. 

Marcus is a member of BSI G01 Governance Committee, this committee contributed to the formulation of the above Standard, in the UK.