The World of Compliance - A Story of 2023
The world of Compliance is fast paced and demand remains high for Financial Crime candidates. As technology advances it continues to give rise for concerns that may stem from Artificial Intelligence and Cybersecurity. Of course, technology offers opportunities to companies but they do need to manage associated risks. We have seen data breaches in the tech sector and that does bring a huge financial implication as well as reputational damage. Companies are facing more scrutiny when it comes to data breaches and data privacy so it is essential to have the appropriate risk framework in place.
The role of the Compliance Officer is to keep up with digital transformation, new technology and regulatory changes. Regulations are in place to protect companies and as they change this requires continuous monitoring and regular updates to policies and procedures. Failure to keep up with new regulations and therefore new risks leads to the aforementioned data breaches and associated costs. Third party risks remain a constant for companies.
For companies it may not be enough to have a Compliance team, do you have the right people on the team? As regulation and technology change do you have the proactive people on board, people that have an agile mindset. People that are active in their continuous training and that can build relationships within the business. Compliance is an incredibly important position within any company and it is important to have and maintain a good company culture. With remote and hybrid working it is important to have sufficient support in place as face-to-face interactions are low.
What does the future hold for the world of Compliance? As noted the Compliance Officer has to have a proactive mindset and thus have an awareness for any potential regulatory breach. These qualities essentially make the role more of a business advisor that is open to creative risk taking. Blockchain, ChatGPT, AI have really changed the landscape and the roles and responsibilities of the Compliance Officer. Do you have the right people on board to adapt to significant changes? Having the right people on board is key and also having the technology in place.
We may see more regulation in the ESG space in terms of environmental practices and any sustainability targets. Economic factors or indeed any potential new global event could significantly change how companies approach their risk framework.
John Paul is available on 086 440 6244 or firstname.lastname@example.org to discuss Compliance and Risk positions.