ISO37301 – Defining the Scope of a Compliance Management System
Introduction
ISO 37301:2021 is a comprehensive international standard for establishing, developing, implementing, evaluating, maintaining, and improving a compliance management system (CMS). One of the first and most important steps in building a CMS is defining its scope. A well-defined scope sets clear boundaries and expectations for compliance across the organisation.
Why Defining the Scope Matters
The scope of a CMS provides clarity on what the system covers. It ensures that the compliance efforts are focused, relevant, and tailored to the organisation’s operational realities. Without a clearly defined scope, the CMS may become disjointed, inefficient, or misaligned with the organisation’s goals and risks.
Clause 4.3 – Determining the Scope of the Compliance Management System
Clause 4.3 of ISO 37301 requires an organisation to determine the boundaries and applicability of the CMS to establish its scope. This includes consideration of:
– Internal and external issues (from Clause 4.1)
– Relevant compliance obligations (from Clause 4.2)
– Organisational functions, units, and activities
– Physical and digital boundaries of the organisation
Steps to Define the Scope of a CMS
To define the scope effectively, organisations should:
1. Analyse the organisation’s structure, objectives, and operations.
2. Identify areas with compliance risk exposure.
3. Consider the expectations of stakeholders and applicable laws.
4. Decide whether the CMS applies to the whole organisation or specific units.
5. Document the scope in a clear and concise statement.
Example Scope Statement
“The scope of the Compliance Management System of XYZ Corporation includes all business units and support functions operating within the United Arab Emirates, covering compliance with applicable financial regulations, data protection laws, and internal codes of conduct.”
Conclusion
Defining the scope of a compliance management system is a foundational step in aligning ISO 37301 with an organisation’s strategic direction and operational needs. A clear scope ensures that the CMS is efficient, relevant, and aligned with stakeholder expectations and regulatory requirements.
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.