Integrating the compliance function into an organization’s C-Suite not only improves crisis preparedness but also helps protect the bottom line. Performing that integration is not always so easy, however. The first roadblock is the C-level structure itself.
A 2016 survey by Deloitte found 21% of companies surveyed did not have a designated Chief Compliance Officer (CCO). Only 43% of those surveyed reported the CCO held a seat on the Chief Executive Officer’s executive management committee.
Despite all of this, says a recent Forbes article, there are a few important strategies companies can employ to create an effective compliance program that involves the C-Suite.
#1: Ensure better data is available. C-Suite executives are more likely to participate in compliance strategy planning and crisis management if they can quickly and efficiently review key data points.
#2: Be proactive to help ensure profitability. A proactive compliance strategy and measures goes beyond preventing violations before they occur. The preventative approach is also likely to save the company a great deal of remediation and reputational costs. That will garner the attention, buy-in and participation of C-level executives, including the CEO.
#3: Create a specialized working group. The creation of a compliance committee, typically led by company’s top compliance executive, with a clearly defined charter and strategic mandate is critical to the success of an organization’s compliance program.
For more detail on how your company can employ these three strategies, consider reading the recent Forbes article.