The role of a compliance officer

The role of a compliance officer, sometimes called a compliance manager, is to make sure that a company is conducting its business in full compliance with all national and international laws and regulations that pertain to its particular industry, as well as professional standards, accepted business practices, and internal standards.

There is both an ethical component and a pragmatic component to compliance. It's a role that is crucial in helping organisations manage risk, maintain a positive reputation, and avoid lawsuits.

Compliance officers must have an innate and intuitive knowledge of the company’s goals and culture. They must also have strong understanding of the greater industry and standard business law. They are charged with educating the entire company and instituting practices that will ensure the highest possible level of compliance.

The most effective line of defence a corporation can implement against federal prosecution, including both civil and criminal enforcement, is an efficient and effective compliance program. An efficient and effective compliance program is not attainable without the right compliance officer.

Levels of responsibility

Most often found in healthcare and banking, compliance officers are an important component of corporate governance. They determine how an organisation is managed, directed, and governed. Furthermore, they oversee the relationships between stakeholders and the structure by which company objectives are set and followed. They usually report to the CEO or COO.

The International Compliance Association breaks down the role of a compliance officer into two levels of responsibility:

Level 1: compliance with the external rules that are imposed upon an organisation as a whole

Level 2: compliance with internal systems of control that are imposed to achieve compliance with the externally imposed rules.

“Most agree that raising awareness of risk, training, and advice are critical elements of the CO’s mission. Therefore, a good Compliance Officer has the demanding and complex task of fulfilling all these roles.” - Blandine Cordier-Palasse, Vice-President and Co-founder of the Compliance Circle.

The quintessential personality of a compliance officer

One aspect of a compliance officer’s job is communicating compliance-related issues to employees across all divisions of the organisation. Sometimes this requires deciphering confusing or abstract laws or ethics and determining how to establish and integrate best practices. A compliance officer must therefore have great people skills and be able to communicate and cooperate across the employee chain. Additionally, they must simultaneously have a firm grasp of the business.

In addition to being a level-headed, clear communicator, here are some other qualities that excellent compliance officers posses:

• Ethical and principled: These are the single most important qualities of a compliance manager.
• Fair and modest: Willing to scrutinise all the facts without making a snap judgment. Interview any relevant employees for their perspective.
• Proactive: A honed alertness and vigilance to potential breaches in compliance. This means actively enforcing a mandatory reporting policy and seeking out any weakness in company dealings.
• Intelligent and willing to keep learning: Most industries that employ a compliance officer are subject to constantly changing legislation. So staying on top of things is vital.
• Diligent: Even when it becomes a hassle, a compliance officer must be willing to see an issue through to resolution. Every time
• A strong constitution and extra conviction: Solid backbone and the strength to stand by difficult decisions. Ability to be more influenced by right versus wrong than by relationships. Willing to take the lead in setting the tone for corporate integrity.