What are the challenges facing the Compliance function today? We asked Compliance professionals what they thought; their answers are enlightening.
In turbulent economic times with ever increasing regulatory requirements on businesses, the Compliance function is coming under ever more pressure to perform. However, as with any business function this brings it’s own unique set of challenges and difficulties. We recently posed the question to those at the coal face of Compliance as to what they considered the most challenges aspects were today and collated the most common suggestions.
1. Staying abreast of regulatory changes
The most cited challenge for conscientious Compliance professionals of today. The ever changing regulatory landscape that the Compliance function must operate within presents challenges in not only keeping up to date, but ensuring that adequate controls are implemented and managed effectively whilst maintaining the day to day operational requirements.
2. Compliance as a cost centre
The challenge of proving that Compliance can be a cost saver in the long term when implemented proactively rather than a cost centre that is perceived as a necessary evil. Demonstrating that “integrated compliance can lead to improved quality, process controls, individual competency and customer and client satisfaction.”
3. Adequate resources
The lack of adequate resources arises as a direct result of both the challenges of implementing the varied and demanding regulatory changes and the perception of Compliance as a cost centre. Ensuring that the Compliance function is granted adequate resource that permits it to manage the level of regulatory change whilst maintaining the day to day Compliance responsibilities is much less prevalent than might be hoped for.
4. Executive buy in
Encouraging those at the top to view Compliance as a source of “constructive, sound business advice” that keeps the firm safe rather than a check box exercise.
Not only a widespread culture throughout the entire business that buys into doing the right things the right way, first time rather than viewing Compliance as an inconvenient bolt on, but also a culture of continuous improvement in the teams themselves.