THE CONCEPT OF REGULATORY COMPLIANCE: THE MEANING AND PLACE IN THE ECONOMIC SECURITY SYSTEM OF THE ENTERPRISE (EXAMPLE OF WATER SUPPLY AND SUPPLY)

Keywords: compliance, regulatory compliance, compliance risk, economic security, risk identification, water supply and sewerage companies

Abstract

In the conditions of unstable economic environment and legal framework, the main task of enterprise management is to adapt to changing external conditions and reduce the manifestation of negative factors in their activities. The dynamic nature of domestic legislation and the considerable pressure from regulators and regulators create the need to introduce a regulatory compliance system that will ensure compliance with regulatory requirements for businesses of all types and forms of ownership. The subject of research in this work is the peculiarities of the activity of water supply and sewerage companies in terms of compliance with the national legislation. Enterprises of this industry have a special status: on the one hand, as communal enterprises, whose activity is regulated by local governments and the state, and on the other, as enterprises that are subjects of natural monopolies, they are characterized by certain features in ensuring their financial and economic security, especially in terms of compliance. The objective of the article is to identify the features of regulatory compliance and to develop conceptual bases for the regulatory compliance system based on the example of water supply and sewerage companies, whose activities are largely governed by regulations. The purpose of this research is to develop an author's approach to understanding the concept of regulatory compliance and compliance risks and to develop recommendations for the formation of a regulatory compliance system for an enterprise. Using common logical-analytical methods, this article explores the nature of regulatory compliance and the specificities of regulatory requirements for the activities of water supply and sewerage companies. As a result, the authors provide an author's understanding of the term. A conceptual scheme of regulatory compliance at the enterprise has also been developed. Conclusions have been made regarding the need to highlight regulatory compliance as an important element of an enterprise's strategy and a component of its economic security, able to increase the efficiency of company’s performance.

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Author Biographies

Nataliia Chekh, O. M. Beketov National University of Urban Economy in Kharkiv
PhD (Economics Sciences), Senior Lecturer of the Department of Financial and Economic Security, Accounting and Auditing, Kharkiv
Vitalij Panov, O. M. Beketov National University of Urban Economy in Kharkiv
Graduate Student of the Department of Financial and Economic Security, Accounting and Audit
Valerij Shpilko, O. M. Beketov National University of Urban Economy in Kharkiv
Graduate Student of the Department of Financial and Economic Security, Accounting and Audit
Kseniia Savenko, Simon Kuznets Kharkiv National University of Economics
PhD (Economics Sciences), Associate Professor of the Department of International Business and Economic Analysis

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Published
2019-09-23
How to Cite
Chekh, N., Panov, V., Shpilko, V. and Savenko, K. (2019) “THE CONCEPT OF REGULATORY COMPLIANCE: THE MEANING AND PLACE IN THE ECONOMIC SECURITY SYSTEM OF THE ENTERPRISE (EXAMPLE OF WATER SUPPLY AND SUPPLY)”, INNOVATIVE TECHNOLOGIES AND SCIENTIFIC SOLUTIONS FOR INDUSTRIES, (3 (9), pp. 53-61. doi: 10.30837/2522-9818.2019.9.053.