Challenges for the Chief Compliance Officer (CCO)
You are
the Chief Compliance Officer!
You are
responsible for ethics and compliance. You are responsible to
build a
strong organizational ethics and compliance program,
which is a high priority in any organization, especially in listed
ones.
Reputational Risk Management
is becoming more and more important. Every compliance or ethics
issue may lead to a scandal or
a
problem with the company’s reputation that
may weaken its brand value.
Supervisors, Regulators, Internal and External Auditors
try to ensure that you have built a good ethics and compliance
program, and that you have the necessary knowledge and experience
as the chief ethics and compliance officer in charge.
These are the major
challenges for your job:
Challenge 1:
Your
role is not clearly and properly defined.
Challenge 2:
There are
Conflicts of Interest (self-review).
You manage
functions and you audit them for compliance the same time.
Challenge 3:
You are
not independent.
You do not
report to the CEO.
You do not
have the authority.
Your job is not decided and terminated only from the Board of
Directors.
You are
not able to make a difference.
Challenge 4:
Although
they say that they rely on you, they don't give you
the financial and human resources necessary to do your job, to
educate employees and management, to respond to violations
effectively in a timely manner.
Challenge 5:
You have
no accurate data - there is no effective monitoring and reporting
in place, amd you can do nothing for that.
Challenge 6:
You are not connected
to the operations. You are here "for compliance" (just for show).
You are avoided, and you become isolated. You are not
participating in major decisions.
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