Consequences of compliance weaknesses are in the seven- to ten-figure range per company, as public reporting proves. They cover financial, operational, strategic and legal effects for both executives and the organization.

Implications of ineffective and inefficient compliance systems are vast. They include a myriad of direct and indirect cost effects. 

Opportunity costs for lost chances count among these. For instance for better capital procurement costs, for investor value increase and for accessing, attracting and retaining preferred capital providers, business partners, high potentials and top performers. In short, of all actors relevant for business success.

Added to this, without effective compliance systems, the company is foregoing more than 70 proven, highly significant strategic, operational and financial competitive advantages.

Fragmentary or missing legal liability relief of executives and of the organization due to substandard compliance systems is an-other cost issue - and a harshly incalculable risk in all jurisdictions.

Competitors are only waiting to exploit these weaknesses to gain significant strategic and operational advantages. This further amplifies the negative cost effects and other implications.

Resilient, effective and (cost-)efficient compliance has thus long become part of the strategic, operational, legal and financial standard toolbox of successful companies. 

On the legal side, liability release and exoneration of CEO, Boards and other Executives when delegating compliance tasks is centrally dependent on objectively evident competencies of the selected internal or external compliance professionals. This is set out in several chapters of the books, please see > publications.  

This delegation aspect of the Business Judgement Rule (BJR) is a basic legal principle in all jurisdictions. Liability relief of executives is based on their selection of clearly qualified professionals and due documentation of their selection decision. Notably, a legal education background alone is not sufficient for building effective and efficient compliance systems, as practice consistently proves.

In short, liability relief of CEO, Board and other executives depends on the combined economic, managerial and legal compe-tencies and experience of professionals working on the tasks.

In addition to liability relief, the selection of professionals certainly determines the vast cost effects and other financial consequences of the organization's compliance management. And it opens up - or locks up - a wide range of strategic and operational opportunities.

The selection decision also determines the legally required effectiveness and the efficiency of compliance projects, evidently. 

Comparing qualifications and selecting distinct competencies is a core legal and managerial duty of decision-makers. And it is in their objective and obvious financial, legal and reputational self-interest.

For your selection decision based the above requirements, a detailed 10-page CV & Professional Profile is available from

                                  office@pauthner.com