Pressures on the compliance function in modern business

Abstract

The modern business environment is marked by increasing complexity in regulatory requirements, the strengthening of ESG criteria, and accelerated digitalization - all of which create new and multifaceted pressures on the compliance function. This paper explores how organizations can respond to the challenges of contemporary due diligence, particularly with regard to risk management, supply chain integrity, and the ethical use of emerging technologies. Instruments such as the OECD Competition Compliance Programs, Compliance Without Borders Handbook, and Business Principles for Countering Bribery are analyzed, highlighting the need for a comprehensive compliance approach grounded in strategic relevance, ongoing employee education, and a strong culture of integrity. Special attention is given to proactive analytics, data protection, and mechanisms for identifying and reporting misconduct, as well as to the importance of designing compliance systems proportionately. This paper brings together insights and practices from various sources and offers recommendations for strengthening organizational resilience through the full engagement of available resources, public-private sector partnerships, and strong support for open communication. It concludes that the compliance function must evolve from a traditional control role to a proactive one. We argue that compliance should be regarded as a strategic tool for managing regulatory, ethical, and reputational risks - a key component of sustainable business operations. It is important to note that in the modern approach to the compliance function, financial due diligence is increasingly becoming an indispensable tool. Its role goes beyond conventional financial checks and is evolving into a continuous instrument for monitoring and assessing risk, particularly through the analysis of liquidity, solvency, profitability, and capital structure. The classification and interpretation of financial indicators, as systematized by Vidaković, enable the integration of a company's financial health into the broader compliance framework, strengthen the strategic role of the function, and affirm the need for compliance to operate not only as a control mechanism but also as an advisory partner to management teams.