The Evolution of Compliance Management: A Look at Recent Transformations
10 December 2024

Compliance management has undergone significant transformations in recent years. Driven by new regulatory requirements, technological advancements, and shifting societal expectations, the role and functionality of compliance within organizations have evolved dramatically. The recent PwC study “Compliance Transformation 2025+” provides insightful perspectives on these changes and highlights how companies in the DACH region are adapting to new challenges.

  1. From Control to Value Creation

Traditionally, compliance was seen as a reactive function focused on adherence to legal regulations. Today, it stands at the core of the value chain. According to the study, 94% of companies have significantly expanded their compliance scope over the past five years. Compliance now encompasses not only traditional areas like anti-corruption and antitrust laws but also new domains such as:

  • Data Protection (e.g., GDPR)
  • Human Rights (e.g., supply chain due diligence laws)
  • ESG Criteria (Environmental, Social, and Governance)
  • Product Compliance (e.g., EU Deforestation Regulation).
  1. Drivers of Change: Risk Orientation and ESG

A key driver of this transformation is the focus on risk-oriented approaches. Companies are increasingly aligning their compliance management systems (CMS) with specific risks arising from new business models, technological developments, or regulatory requirements. For instance, 93% of respondents assess the risk potential of ESG topics as high or very high. As a result, compliance has evolved from being a control function to becoming an integral part of strategic risk management.

  1. Digitization as a Key Enabler

Digitization has fundamentally changed compliance. Digital solutions and AI-driven tools enable:

  • Real-Time Risk Monitoring: Automatic identification of regulatory changes and their implementation.
  • Efficiency Gains: Streamlined processes through automation.
  • Data-Driven Analysis: Enhanced decision-making through predictive analytics and pattern recognition.

According to the study, 72% of companies report positive effects from the use of digital technologies in compliance management.

  1. Compliance Culture and the Role of Employees

A robust compliance culture is indispensable. Companies with high compliance standards systematically measure how effectively employees raise concerns, understand training, and align with corporate values. Promoting a “speak-up” culture and establishing a reliable whistleblowing system are critical. Best-in-class companies implement comprehensive measures to build trust and foster integrity.

  1. Challenges and Opportunities

 Challenges

  • Regulatory Complexity: New laws, such as the EU AI Act or supply chain due diligence laws, require rapid adaptation.
  • Resource Constraints: Growing demands on specialized compliance teams often outpace the availability of interdisciplinary talent.
  • System Integration: Connecting CMS with other management systems like risk or quality management remains a challenge.

 Opportunities

  • Business Enablement: Compliance is increasingly seen as a business enabler. 84% of respondents view compliance as a facilitator of new business models.
  • Sustainability and ESG: Strong ESG compliance can provide a competitive advantage.
  • Technology Adoption: Expanding digital solutions promises long-term efficiency gains and cost savings.

 Conclusion: A New Era of Compliance

Compliance management has evolved from a control-focused function to a strategic element that helps organizations manage risks, create value, and support innovative business models. The integration of technology, emphasis on risk orientation, and involvement in ESG topics are central to this transformation.

Companies that adapt to these new requirements early will not only enhance their resilience but also leverage compliance as a strategic competitive advantage. The coming years will reveal how well organizations embrace this change.