Developing a contract compliance management system

The International Standard on Compliance Management Systems, ISO 19600-2014, is the benchmark for compliance management systems. 

According to ISO 19600-2014, a compliance management system is an essential element in the good governance of an organisation (or project). It should:

•  promote a culture of compliance within the organisation;

•  aim to prevent, and where necessary, identify and respond to breaches of laws, regulations, codes or organisational standards in the organisation; and

•  assist the organisation in remaining or becoming a good corporate citizen. 

An effective compliance management system requires dynamic and strategic management of the project's regulatory environment. Accordingly, the person responsible for the compliance program should either have a high level of status and authority within the government party, or be supported by a suitably senior executive.