Coffee & Compliance

Today North House are thrilled to publish the third edition of Coffee & Compliance, an interview series that delves into the world of corporate governance and the ever-evolving landscape of regulatory compliance. In this edition, we're excited to spotlight a conversation with Lina Sandmark, esteemed lawyer at Kompass Advokat. Lina brings with her a rich tapestry of experience, adeptly guiding companies through the intricacies of corporate governance and compliance. Her expertise spans governance documentation, educational initiatives, and invaluable counsel to compliance teams, CEOs, and Boards. It's worth noting that many of the esteemed clients at Kompass Advokat operate in heavily regulated sectors, navigating the complexities of stringent regulatory requirements

Join us as we uncover valuable insights, expert advice, and intriguing perspectives on driving better compliance practices within organizations.

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Compliance plays a crucial role in ensuring corporate governance. In your experience, what are the key elements that make an effective corporate governance framework?

Lina: I would say to create a thoughtfully considered control environment tailored for the specific company in question – or in other words: create a robust foundation where structure, values, and attitudes are established. It involves creating different policy documents, design an organization based on roles, responsibilities and mandates, develop processes that integrate governance in the organization and, lastly, have smart IT systems to create efficient processes for internal control. This is in my opinion the key element of the corporate governance framework. Many companies tend to not put in enough time and resources to establish a proper foundation of its corporate governance. But the time and resources the company think it will “save” by creating a quick fix-foundation, will come back in the form of workloads peaks, errors and even sanctions.

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With the rapidly evolving regulatory landscape, how do you stay up-to-date with the latest compliance requirements and incorporate them into your organization's governance practices?

Lina: I believe it is smart to place the responsibility of staying up-to-date at someone in the organization, and give this person sufficient time to actually stay up-to-date. I would recommend such person to follow relevant individuals and companies on LinkedIn, as well as to sign up to relevant companies’ and organizations’ newsletters.

Many requirements need of course to be incorporated both in different internal documents and in practice. I have helped a lot of companies with internal document updates and when the documents are finalized, many companies often sends out a short information about the update to the organization. But to be honest, these kinds of documents are for many not a page-turner and tend to be unseen. In order to incorporate the new requirements, all relevant personnel need to receive proper information and education about the requirements and how the document serve as a tool in the employees' daily work. In some situations, a short summary at a meeting could be sufficient, in other situations, there is a need for a longer presentation or a workshop.

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When it comes to governing documents, what are some common challenges faced by companies in maintaining compliance? How can these challenges be overcome?

Lina: Oh, there are many challenges. One common challenge is to find a good structure suitable for the relevant company. I have seen very complex governing documents structures involving numerous of different document levels where it takes a lot of effort just to understand a part of the structure. This can be overwhelming, and it will also be difficult to keep control and make necessary changes. There is not one solution on how to create a governing document structure, but if a company invest to create a robust structure tailored for your company, it will pay off. One of many benefits is that it will be easier to maintain compliance.

Another challenge is evolving regulations and the need to update governing documents to reflect these changes. To maintain compliance in this regard, it is crucial for companies to have efficient processes in place to keep up with regulatory updates.

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With your long experience as a lawyer and governance expert, what advice would you give to legal- and compliance professionals who want to make a positive impact on corporate governance and drive better compliance practices within organizations?

Lina: I would start with the leadership. A good step (and sometimes a tricky one) would be to involve and engage the leaders of the organization, or to get the leaders to really understand that the tone they have will set the tone of the entire organization. The leaders need to guide the work of internal governance and control, for example, by establishing clear goals and principles in governance documents. They also need to be active in their leadership and demonstrating the values the organization stands for, and what’s okay and not okay. The chance of better corporate governance and compliance practices will be much higher if to foster a culture of compliance from top leadership and then down to every employee.

Another advice would be to be business oriented and gain a deep understanding of the company’s industry, operations, and objectives. This will allow you to tailor compliance efforts to the specific needs and risks of the company.

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What are you most looking forward to this fall?

Lina: Besides an upcoming kayak trip to Croatia, I look forward to teaching a lot of fun courses and seminars during this fall. Also, I look forward to seeing the AI Act be finalized (fingers crossed).

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We all know that compliance can sometimes feel like navigating a labyrinth of rules and regulations. If you were to compare compliance to a popular board game, which game would it be and why?

Lina: Hmm, I would say the game Pandemic - a game I played a lot during the end of the real pandemic. It is a cooperative board game where everyone plays together trying to beat the game. The players take on different roles with different features and work together to clear the world from diseases. It is quite complex in the beginning, and the entire team need to make strategic long-term decisions in order to win. You always struggle to get control of the diseases – and if not making the right call, there are many ways to lose.

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Join us for future editions of "Coffee & Compliance" as we explore the multifaceted world of governance and compliance, unraveling insights and experiences that shape the way organizations navigate the intricacies of regulations. Stay tuned for more compelling conversations!

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