Compliance Risk Assessment Tools Gain Importance in Russia

Moscow - As Russia’s economy continues to grow and evolve, businesses are increasingly recognizing the need for effective compliance risk assessment tools.

The Growing Significance of Compliance in Russia

In recent years, the concept of compliance has gained significant legal significance in Russia. Experts agree that the main spheres subject to compliance management in Russia include:

Anti-Corruption: Preventing bribery and corruption within organizations
Antitrust: Ensuring fair competition practices
Combating Money Laundering and Terrorism Financing: Protecting against illegal activities
Personal Data Protection: Safeguarding personal information

The Challenge of Implementing Compliance Measures in Russia

However, Russian legislation and regulations provide limited guidance on implementing risk management and compliance measures within these areas. As a result, many entities are relying on international standards and guidelines, particularly those from the United States, European Union, and United Kingdom.

Best Practices for Compliance Risk Assessment Tools

Despite the lack of obligatory rules, the voluntary implementation of risk and compliance management practices has become a best practice for many Russian businesses. In fact, companies that adopt effective compliance governance are often exempt from liability or at least mitigate it.

Some key benefits of implementing compliance risk assessment tools include:

Exemption from Liability: Companies that comply with regulations may be exempt from liability
Mitigation of Liability: Compliance can help reduce the risk of legal consequences

Corporate Governance Code and Obligations

The Corporate Governance Code, approved by the Central Bank of Russia in 2014, provides guidance on corporate governance principles and recommendations for joint-stock companies. Although not mandatory, compliance with the code is necessary for listing on a stock exchange.

Many entities incorporated in Russia have also adopted internal corporate policies or regulations that impose compliance governance responsibilities within their organizations. In some cases, compliance governance may be delegated to board members or employees.

Key Risk and Compliance Management Obligations

The key risk and compliance management obligations of undertakings in Russia include:

Designating Departments: Designating departments responsible for preventing bribery
Cooperating with Law Enforcement: Adopting protocols for cooperating with law enforcement authorities
Ethical Business Conduct: Developing policies for ensuring ethical business conduct
Codes of Ethics and Professional Conduct: Creating codes of ethics and professional conduct for employees
Conflict Resolution: Establishing procedures for identifying and resolving conflicts of interest

The Future of Compliance Risk Assessment Tools in Russia

As the Russian economy continues to evolve, it is likely that compliance risk assessment tools will become increasingly important for businesses operating in the country. By implementing effective compliance risk assessment tools, companies can mitigate risks, reduce liabilities, and ensure long-term success in the Russian market.