As regulators continue to clamp down on misconduct with higher fines, compliance officers are under even greater pressure to prevent unethical conduct.
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Protecting a company's ethical integrity is at the heart of the compliance officer's role. But what does it take to succeed?
We have identified six crucial skills that every compliance officer needs to possess to protect their company effectively.
Employees often see compliance as merely an obligation. Compliance isn't the core focus of someone working in Marketing, Strategy or Operations. In fact, it's unlikely to feature on their priority list at all. So, being pulled away from their work to participate in compliance training is an inconvenience.
However, if people can't do something because it could risk a regulatory investigation, compliance becomes more than just an inconvenience. It's a hindrance. This can create an 'us and them' environment, where the compliance officer becomes alienated from the rest of the organisation.
The most effective compliance officers connect with people on a human level. They engage with people beyond just advising on what they can and can't do and issuing training requirements. They show interest in them as people, not just concerning the challenges they face in their role but also on a more personal level.
It could be anything from a simple hello in the corridor to bonding over a drink at a work social event. The point is people will be much more likely to seek your advice and trust you with compliance matters if they see you as one of them.
Being a compliance officer isn't just about drumming rules and regulations into people. The best compliance officers understand how their role fits within the broader goals and objectives of the organisation.
If you understand the motivations of the business, you are far better equipped to build compliance programmes and deliver training courses with the necessary messages. This knowledge means you can better anticipate the risks of the business and take the necessary steps to deal with them.
Compliance officers are met with problems every day. If someone in the business approaches them for guidance on how to handle a situation from a compliance perspective, they need to look at it from all angles and advise on the most appropriate form of action. And in many cases, the answer isn't necessarily straightforward.
But even more than that, you need to be able to go beyond just saying 'yes' or 'no'. If the preferred approach for the business could result in a violation, you need to be active in helping find an alternative solution.
Ask what the ideal outcome would be and work back from there. Wherever there is an alternative approach that would remove the risk of a regulatory investigation, you need to be committed to finding it.
There may be times when a senior manager or stakeholder in the business wants to go down a certain route that would benefit the business somehow, which - from a compliance perspective just isn’t possible or desirable. You have to break this news, and you know that it will be met with disappointment.
This is where you need empathy. Clearly explain why they can't take that course of action, what the risks are that lead you to make the call you did, and do so with both care and sensitivity. Failing to show empathy in these situations will only work to alienate compliance from the rest of the business. You'll be seen as a hindrance and risk losing credibility.
To be effective, compliance officers need to have a positive relationship with all other departments within the business. A close relationship means you'll be better able to educate them on how they can help meet compliance goals. And they'll feel more comfortable seeking and trusting your advice. In turn, you'll be well-placed to 'nudge' them towards compliance.
You may also need to work alongside other departments, such as IT or Finance, on projects and tasks. The ability to communicate and collaborate effectively in these situations without getting territorial is invaluable.
Compliance officers are under a lot of pressure as the driving force supporting the compliance and ethics of the entire organisation. They need to stay up-to-date with new GRC issues and update course material accordingly while keeping old content fresh and engaging.
They also have to make sure everyone completes the relevant training and track those who don't, keeping their eyes open for red flags. Then there's the multitude of reports they have to generate, both for internal use and to satisfy regulators.
Delivering against all these responsibilities relies on being proactive. They need to stay on top of everything and not let things slip. For example, putting off the task of updating a training course with new regulations could put the company at significant risk. If employees don't have access to the right knowledge and support, you risk instances of accidental non-compliance.
Compliance officers play a vital role in the success of any organisation, especially in highly regulated sectors. Being human is the key theme underlying all of the traits that make an effective compliance officer.
A compliance officer needs to understand both the business and people needs of the organisation so they can support them in their goals and, at the same time, protect the sincerity of the business through compliance.
With the role of compliance increasing in complexity, the need to embed policies becomes more pressing. For example, by introducing a centralised policy hub, compliance officers establish a culture of trust, integrity and accountability.
Meanwhile, businesses in digital-first spaces will move towards embedding risk management into products, services and processes by design.
The future is also about making investments in compliance go further. How? By managing the right mix of people, technology and processes.
Indeed, how you design your operating model and the technologies you use impact the people element and the skills they need.
In terms of technology, artificial intelligence is playing an increasingly prominent role in many industries. How can AI assist compliance? The technology processes huge amounts of data quickly and accurately; when applied effectively, human error is addressed, risk is reduced, and costs fall.
In addition to capitalising on automation and AI, the future involves the compliance officer morphing from an inspector to a business advisor who supports responsibility and creative risk-taking. Your compliance team must be on board with that ethos.
Compliance officers of the future will need to be tech-driven and agile. Harnessing the power of technology rather than shying away from it will allow compliance officers to adopt a forward-looking approach and develop tech-forward compliance solutions.
Having an agile culture will foster innovation and transparency, which will help compliance officers prioritise, build trust, and deliver results in a streamlined way. The compliance arena is ever-evolving, so compliance officers must embrace change and have the ability to adapt swiftly and efficiently.
We have created a series of comprehensive roadmaps to help you navigate the compliance landscape, supported by e-learning in our Essentials Library.
We also have 100+ free compliance training aids, including assessments, best practice guides, checklists, desk aids, eBooks, games, posters, training presentations and even e-learning modules!
Finally, the SkillcastConnect community provides a unique opportunity to network with other compliance professionals in a vendor-free environment, priority access to our free online learning portal and other exclusive benefits.