Compliance Pitfalls: What the CCO Needs to Know

  • June 15, 2021
  • Quantivate

Compliance is a monumental challenge for financial institutions. Compliance management requirements and the regulatory landscape are constantly shifting, making it paramount for organizations to develop and implement agile compliance processes to meet their obligations.

As compliance management has grown more complex, expecting the CCO and other compliance officers to manually analyze high volumes of information and keep pace with changes to the business and regulatory landscape inevitably leads to problems. Issues slip through cracks, resources are misallocated, and organizations become a possible target for regulatory enforcement without sufficient compliance documentation or an audit trail.

Non-compliance can have a serious negative impact on your organization’s credibility and viability if approached haphazardly.

Top Compliance Management Challenges

Regulatory & Business Change

The past few years have seen a vast number of new regulations popping up all over the globe from various regulatory bodies and authorities. Simultaneously, the brick-and-mortar style of business has quickly faded away, and organizations have become more distributed, dynamic, and complex. The challenge is keeping business change in sync with regulatory change.

Ethics & Integrity

Both regulatory bodies and the general public are becoming more critical of corporate practices and culture. This forces compliance professionals to take responsibility and build controls and policies that establish an ethical organization that acts with integrity.

Read more > Looking Toward the Future of Corporate Ethics

Third-Party Relationships

The modern world of business is built on a complex mesh of third-party relationships — ranging from suppliers and software vendors to outsourced business services and operations. Organizations increasingly rely on third parties to assist in managing business processes and services, making it essential to conduct due diligence while onboarding and continuously monitor those relationships.

Organizations need to develop a clear strategy and framework to address compliance in today’s dynamic business environment. It is essential to develop an integrated, agile, and collaborative compliance program that can keep pace with business and regulatory change while enabling coordinated compliance processes, policies, and procedures across functions.

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