Legal Compliance and Liability Risk for Companies

Abstract

Legal compliance means the adherence to and fulfilment of the laws in effect. Of course plant operators have always been required to comply with existing law. But in the last few years the liability risk for companies has greatly risen in the case of non-compliance with legal regulations. This is due among other things to continually developing legal requirements on the national as well as on the international levels. Globalisation causes liability risks to rise. It is vital to implement a risk management system in order to reveal vulnerable company structures and to minimise liability claims. Legal compliance concerns every-one since each company employee - from worker to executive board member - can be faced with liability claims. It is therefore the executive board's task to implement and control a risk management system. Within the framework of a management system the executive board can delegate its task to other staff members. This so-called task delegation can only be carried out under the condition that the board's own tasks be only delegated to well-chosen, competent, informed and welltrained personnel. The board is then required to control and supervise. This system of delegated tasks can be carried down to further company levels (managers, department heads, foremen etc.). Authorised action can only be possible by way of provable, documented task delegation granting immunity from liability. If this is not the case there is danger of extensive legal and liability consequences concerning the company as well as individual employees. The company can be confronted with financial claims, the employees with civil claims and criminal action. Furthermore there is the risk of publiclaw consequences. These extend from rulings after the fact to the order to close down.