FINANCIAL COMPLIANCE AS A COMPONENT OF AN EFFECTIVE RISK MANAGEMENT STRATEGY IN INTERNATIONAL BUSINESS

Abstract

The article provides a comprehensive theoretical and methodological substantiation of financial compliance as a component of an effective risk management strategy in international business. The relevance of the study is determined by the growing regulatory fragmentation of the global market, the complexity of sanctions regimes, increasing requirements for anti-money laundering, anti-corruption integrity, tax transparency, sustainable development and counterparty due diligence in global value chains. The economic nature of financial compliance is defined as an integrated system of management rules, procedures, control actions, information and analytical tools and corporate culture aimed at ensuring that financial decisions comply with legislation, international standards, contractual obligations and ethical norms. It is substantiated that financial compliance in international business cannot be viewed only as a formal legal control function, since it directly affects the cost of capital, access to banking services, reputational resilience, continuity of foreign economic operations and the company’s ability to prevent financial losses. The key areas of financial compliance are systematized: anti-corruption compliance, AML/CFT, sanctions compliance, tax compliance, currency compliance, contractual compliance, ESG compliance, financial reporting compliance and counterparty due diligence compliance. The author proposes an integrated model of financial compliance that combines strategic, risk-oriented, operational, control, digital and reporting components. It is proved that the effectiveness of such a model depends on the combination of risk appetite, compliance culture, counterparty due diligence, internal control, independent monitoring, the use of RegTech solutions and regular review of policies in accordance with changes in the international regulatory environment. The obtained results can be used in the financial management of multinational companies, banking institutions, export-oriented enterprises, public finance bodies and further research on risk management issues.