What is the primary function of a compliance management system (CMS)?

The primary function of a compliance management system (CMS) is to manage and oversee compliance activities within an organization. A CMS is designed to help organizations adhere to applicable laws, regulations, standards, and internal policies. By establishing a structured approach to compliance, a CMS enables organizations to identify compliance obligations, implement necessary controls, monitor adherence, and report on compliance status effectively.

Through active management of compliance activities, organizations can minimize legal and regulatory risks, protect their reputation, and ensure they operate within the framework of applicable laws. This oversight can involve regular audits, assessments, and the development of policies and procedures that help maintain compliance across various aspects of the organization.

While engaging employees in corporate social responsibility is important for fostering a positive workplace culture, it does not encompass the primary focus of a CMS. Similarly, tracking financial performance and developing marketing strategies, while essential business functions, fall outside the realm of compliance management. A CMS specifically focuses on the adherence to legal and regulatory requirements, making option B the most appropriate choice.