Organizations today are challenged to address a confluence of regulatory and business changes that are putting new demands on compliance. The pace of regulatory change, convergence in global regulation, and competition from new market entrants that is driving increased consumer and technology demands have created a complex environment for compliance leaders across all industries. While financial services firms have notably faced a new wave of regulation since the 2007-2008 financial crisis, organizations in other industries have also felt the impact of a proliferation of new rules that affect nearly every part of their operations and influence their strategic decisions. Adding to this challenge is the risk of reputational damage and significant financial penalties that frequently accompany compliance failures.
For some organizations, compliance costs and inherent risks have dictated significant changes in product offerings and business operations. However, many are now viewing compliance as an investment and not simply as a cost. These organizations are realizing that business and operational value, such as better quality data and an improved customer experience, can be derived from anticipating risks and meeting regulatory requirements. This makes compliance an increasingly integrated part of the business investment strategy.
Chief Compliance Officers (CCOs) sit at the center of a compliance framework that demands the ability to work across functions and provides an opportunity to look at the breadth of risks facing their organization. This means that compliance should ideally be integrated across the business and positioned to contribute to business decisions and adapt to the changing business and regulatory environment. With greater integration and agility as the goals, compliance leaders can take immediate steps to enhance compliance effectiveness, efficiency, and sustainability.