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Compliance Officers Need Increased Role in Strategic Decisionmaking

By Kelly A. Briganti, Editorial Director, G2 Intelligence PricewaterhouseCoopers (PwC) announced its fifth annual State of Compliance Survey (2015) indicates corporate compliance officers (CCOs) need to be more involved in strategic decisionmaking—as only one-third of companies report involving the compliance officer in business strategy. “Fulfilling baseline compliance requirements remains a critically important function particularly for industries faced with increasing regulatory scrutiny—but it’s time for CCOs to evolve and become a more strategic partner to the CEO,” said Sally Bernstein, principal with PwC, in a press release announcing the survey results. “Addressing compliance needs within the context of the broader business strategy can help put organizations in a better position to drive growth while proactively navigating risk and regulatory complexity.” The survey also notes that in some cases, compliance officers are facing budget cuts; while some other companies don’t even measure their compliance costs. Bottom line: Compliance officers need to be efficient and control costs related to compliance functions. PwC cited three opportunities for increasing compliance efficiencies: “risk identification and assessment; compliance monitoring and testing; and technology solutions.” PwC advises that compliance officers need to be more assertive and proactive, demonstrating their value to the company and what they can bring […]

By Kelly A. Briganti, Editorial Director, G2 Intelligence

PricewaterhouseCoopers (PwC) announced its fifth annual State of Compliance Survey (2015) indicates corporate compliance officers (CCOs) need to be more involved in strategic decisionmaking—as only one-third of companies report involving the compliance officer in business strategy. “Fulfilling baseline compliance requirements remains a critically important function particularly for industries faced with increasing regulatory scrutiny—but it’s time for CCOs to evolve and become a more strategic partner to the CEO,” said Sally Bernstein, principal with PwC, in a press release announcing the survey results. “Addressing compliance needs within the context of the broader business strategy can help put organizations in a better position to drive growth while proactively navigating risk and regulatory complexity.”

The survey also notes that in some cases, compliance officers are facing budget cuts; while some other companies don’t even measure their compliance costs. Bottom line: Compliance officers need to be efficient and control costs related to compliance functions. PwC cited three opportunities for increasing compliance efficiencies: “risk identification and assessment; compliance monitoring and testing; and technology solutions.”

PwC advises that compliance officers need to be more assertive and proactive, demonstrating their value to the company and what they can bring to corporate strategizing. “Applicable laws and regulations will always be primary responsibilities for compliance officers. But the compliance function can be so much more. By expanding the views of the compliance function and the strategic value they offer, CCOs can become a more valued member of the executive team—and a future star of the C-suite,” Bernstein advised in the release.