LEGAL FRAMEWORK FOR COMPLIANCE MANAGEMENT UNDER CONDITIONS OF DIGITALIZATION OF GOVERNANCE AND THE USE OF AUTOMATED CONTROL SYSTEMS

Abstract

The article provides a comprehensive analysis of the legal framework for compliance management in the context of governance digitalization and the implementation of automated control systems in Ukraine. The relevance of the study is due to the transformation of the public and corporate sectors, as well as the growing role of digital technologies in managerial decision-making. Within the framework of e-government development, compliance management is considered a key instrument for ensuring legality, transparency, accountability, and the reduction of corruption-related risks. The theoretical foundations of compliance are defined as a system of internal policies, procedures, and control mechanisms aimed at ensuring that organizational activities conform to statutory requirements, ethical standards, and internal regulations. Its multidisciplinary nature and its importance for fostering a culture of integrity are emphasized. The current state of regulatory support in Ukraine is analyzed, revealing the absence of a unified legislative definition of a compliance system as an independent legal institution. Particular attention is paid to the need for harmonizing national legislation with international standards, including the requirements of the General Data Protection Regulation and the ISO 37301:2021 standard. The impact of digitalization on the transformation of administrative procedures and internal control systems is examined. Automated management systems, ERP platforms, and artificial intelligence technologies significantly enhance risk monitoring capabilities and the prevention of regulatory violations. At the same time, the study outlines potential risks, including algorithmic bias, cybersecurity threats, the lack of transparency in automated decisionmaking, and the complexity of establishing legal liability. The necessity of developing a comprehensive model of legal support for digital compliance management is substantiated. Such a model should include the formal establishment of organizational obligations regarding internal control, standards of algorithmic transparency, audit mechanisms, and effective interaction between internal compliance functions and external supervisory authorities. It is emphasized that the effectiveness of compliance systems depends not only on technological tools but also on organizational structure, digital literacy of personnel, and the integration of compliance procedures into managerial processes. The article concludes that digital compliance management constitutes a strategic instrument for the modernization of public administration and business, contributing to the strengthening of the rule of law, enhancement of institutional trust, and formation of a transparent legal environment. Its effectiveness is achievable only through the combination of technological innovation with clear legal regulation and robust ethical standards.