Whats on the Chief Compliance Officers Mind

Since 2009, 54,000 regulatory documents have been published
from 130 different regulatory bodies in G20 countries alone.

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Through dinners, conferences, in my role as a non-exec director and in direct business meetings, I often get to speak directly with and hear insight from chief compliance officers and, as you might imagine, the discussion centres around compliance, data governance and the shake-up that is ongoing in the field. 

 

For context compliance oversight within financial institutions is an extremely complex issue and is continually weighed down by siloed, manual processes that are inefficient to oversee and manage. An ever changing regulatory landscape and intrusive supervision over the last decade has compounded this issue further. However, I believe that at the very core of compliance lies three clear principles: communicate your obligations, understand your status and evidence your compliance.

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Guide to Compliance Oversight

 

 

 

What I hear from chief compliance officers is their struggle to see what work is being done across all compliance activities and projects. All seem to be struggling at the first hurdle of good practice and trying to communicate their obligations clearly. The general consensus is that too much information is unfit for the purpose of executive oversight; it is often passed from management to senior executives in unsuitable formats that are not accounting for the change in audience. Consequently, the conversation highlighted the urgent need for clearer processes and methods on how to repackage data into reports.

 

As a result of this, there is a subsequent lack of challenge from senior executives to management - if you can’t understand something, you’re in no position to critique and improve it. I have heard this re-iterated by regulators, who voice their concern at a lack of evidence of both oversight and challenge within compliance. Often Compliance Officer will relay that they have ongoing projects to make reporting both more effective and more efficient, but at present, there is simply too much unclear reporting being accepted by senior executives which needs to change.

 

Despite the challenges that compliance officers face, much of our conversation is positive about the innovations that are entering the market and that RegTech solutions have the potential to provide real value for money and allow compliance oversight to become more efficient.

 

Want to learn more, download the Governor Software, A Guide Compliance Oversight here

 

 Guide to Compliance Oversight