Compliance Burden on Officers


A compliance officer is a working member who ensures that the company’s regulatory and legal policies have been well taken care of along with its internal rules and regulations by law. A compliance department of a company constitutes its members, its officers, and the Chief Compliance Officer (CCO). The Chief Compliance Officer keeps the compliance of the company safe from risks with the help of the compliance officers and other non-compliance members.

A chief compliance officer together has to maintain security and sanctity of the compliance obligatory policies preventing the possible risk which might occur if not taken into consideration.

The simple reflection of the roles and responsibilities majorly includes investigating and managing regulatory risk. This also includes day-to-day monitoring of the work and all other activities of the company to foster compliance risk management.

The compliance officers form the power behind the chief compliance officer for the smooth and efficient functioning of the compliance management in the company. The compliance officers have hefty roles to play.

Some of the roles and its respective burden for the compliance officers have been listed below:

  1. A compliance officer remains overburdened with frequent change in the financial condition of the market which even implies checking the identification of the potential owners for their legalized customers.
  • A compliance officer has to carry an efficient compliance program and keep updating the regulatory policies to be aware of the changes.
  • Continuous overlooking and reviewing of the company policies to give them the right structural and ethical implementation.
  • Revising the policies to keep complete control over the designated laws of the company and holding strict investigations to go through every corner of the organization.
  • Assessment of the varied operations across different sectors of the company to shrink the possible chances of developing risks.

Ways to Reduce the Burden of Compliance Officers:

Below are few ways to reduce the above mentioned burden on the Compliance Officers:

  1. Develop a compliance culture across the company: The development of a difficult but persuasive culture of compliance helps the company to keep up with the rules and regulations imposed. The work ethics generated due to this culture would result in the growth healthy working atmosphere built for everyone’s benefit.
  • Relationship with third-party partners: Today, the responsibilities of the compliance officer lie beyond the boundaries of the organization. The organization is held responsible for the wrongdoings of the third-party partners. The organization has to look into the happenings in and around the corporate framework to avoid the effect of the mishappenings.
  • Holding on to the company’s risk profile: Every organization has its own considerable factors based on which the risks or threats to the organization can be scaled. Without having a complete overview of the problem, the appropriate management of the risk cannot be dealt with effectively.
  • Compliance officers have to frequently move across various projects, states, timeline. This often requires overpowering dedications and Compliance officers have to look into corresponding projects with distributed deadlines and work visions. Procrastination has to be kept away largely from the to and frost of the work.
  • Reinforcement of strategies, vivid planning, and statistical implementations of the future endorsement, affiliations, and calibrated market developments need a close subtle watch for the rapid growth of business and prevention of the compliance risk at large.

Underrated aspects of compliance that involves heavy risk to the compliance officers are the uncertainty of the market scenario with the rampant disclosure of the traditional important factors like finance, quality, products, advancement in technology, and digitization of the compliance. Culture and Conduct Risk is one of the impacted burdens for the compliance officer as it is a very influential factor in the corporate world.

Automation of Compliance services has greatly affected the compliance regulators as well as the organization to keep up and manage the human touch understanding its importance in the world of corporate compliance. With the striking fast development of the technology with AI and Machine Learning, automation has become rather simpler to keep track of the data in regards to the rules of the company. In this scenario, the manpower and employee detailing involving the obligatory policies turns out to be a major distressed worry for the compliance officer and the organization at large.