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Compliance Risk Management in Polish and German Companies

Author

Listed:
  • Gorgoń Monika

    (Director Compliance and Organizational Risk Management Department, Warsaw Stock Exchange, Warsaw, Poland)

  • Raczkowski Konrad

    (Director of the Institute of Economics, University of Social Sciences in Warsaw, Warsaw, Poland)

  • Kraft Felix

    (Manager Forensic & Integrity Services Ernst & Young GmbH, Wirtschaftsprüfungsgesellschaft, Germany)

Abstract

Objective: This article focuses on the analysis of cultural similarities and differences important in terms of the compliance risk management in Polish and German enterprises, with the deliberate omission of Hofstede’s four cultural dimensions, in favour of the modified E. Schein’s model. This article explains the basic concept of risk management culture, the compliance risk and the essence of the compliance management system in Poland and Germany as well as the impact of cultural factors of each of the analysed countries on the development of compliance. The research objective of this paper is to present a comparative analysis of the examined countries, through the analysis of compliance management systems, as an indispensable element of risk management in an organisation, both in practical and formal terms.Methodology: This research is based on a critical review of the source literature and inference with assigned classical and fuzzy logic values as part of the culture description and risk management.Findings: The initial hypothesis is that the compliance risk management in companies in Poland and Germany has common and standardised features of the Community legal standards, which can be differently displayed from the declarative and actual point of view in Germany, due to an increase in internationalisation and intercultural relations.Value Added: This article presents the theoretical significance and functions of compliance risk management based on an analysis of applicable compliance systems and cultural systems in Poland and in Germany.Recommendations: The compliance risk management system is an essential risk management mechanism in organisations, both in formal and practical terms. It should take into account both the cultural diversity of the regions in Germany and the high cultural and ethnic homogeneity of enterprises in Poland – open, however, to cultural diversity.

Suggested Citation

  • Gorgoń Monika & Raczkowski Konrad & Kraft Felix, 2019. "Compliance Risk Management in Polish and German Companies," Journal of Intercultural Management, Sciendo, vol. 11(4), pages 115-145, December.
    • Handle: RePEc:vrs:joinma:v:11:y:2019:i:4:p:115-145:n:5
    DOI: 10.2478/joim-2019-0026
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    References listed on IDEAS

    as
    1. Peter Verhezen, 2010. "Giving Voice in a Culture of Silence. From a Culture of Compliance to a Culture of Integrity," Journal of Business Ethics, Springer, vol. 96(2), pages 187-206, October.
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    3. Axel V. Werder & Till Talaulicar & Georg L. Kolat, 2005. "Compliance with the German Corporate Governance Code: an empirical analysis of the compliance statements by German listed companies," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(2), pages 178-187, March.
    4. Cadbury, Adrian, 2002. "Corporate Governance and Chairmanship: A Personal View," OUP Catalogue, Oxford University Press, number 9780199252008.
    5. Elisabeth Sundrum, 2004. "Moving beyond compliance and control: building a values-based corporate governance culture supportive of a culture of mutual accountability," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 1(2/3), pages 192-209.
    6. repec:dau:papers:123456789/11284 is not listed on IDEAS
    7. Kai D. Bussmann & Anja Niemeczek, 2019. "Compliance Through Company Culture and Values: An International Study Based on the Example of Corruption Prevention," Journal of Business Ethics, Springer, vol. 157(3), pages 797-811, July.
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    9. David L Olson & Desheng Dash Wu, 2007. "Enterprise Risk Management," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6732, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    risk; compliance risk; management; compliance; compliance management system; interculturality;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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