Career Path Job Descriptions

What Does a Chief Compliance Officer Do?

All organizations and government agencies need to follow a strict compliance program to ensure they don’t break any rules and laws. Therefore, companies hire compliance officers to manage all compliance issues, and the head of these officers is the Chief Compliance Officer (CCO). 

The duties and responsibilities of a chief compliance officer can vary depending on their industry. For example, corporate compliance will be very different from regulatory compliance in a federal department. 

In this article, we’ll take a closer look into the roles, duties, and abilities of a chief compliance officer. 

What Does a Chief Compliance Officer Do – Typical Roles in Organizations 

The chief compliance officer of an organization or governmental agency primarily oversees, manages, and ensures the regulatory compliance within that organization. 

Typically, the CCO reports to the Chief Executive Officer (CEO). However, in some cases, the CCO also reports to the Chief Financial Officer (CFO) and the Chief Information Officer (CIO). In any case, the chief compliance officer is an executive-level position and requires the person to work with fellow executives. 

Therefore, the chief compliance officer also needs to understand business administration along with compliance management. 

The state of compliance of any organization determines its relation to the market and the United States government. Therefore, it’s crucial to ensure that all compliance requirements are fulfilled. However, some chief compliance officers also develop positive relationships with regulators to ensure better compliance. 

There are different regulatory bodies for each aspect of an organization. The compliance manager and senior management are responsible for keeping track of each kind of compliance. The chief compliance officer has to ensure that compliance management is taking every regulatory requirement into account. 

The chief compliance officer position can be tricky at times due to conflicts of interest. That usually occurs when you have to ensure compliance standards are met, but that would mean disaster for the organization. At that point, either the chief compliance officer can let go of compliance activities to avoid organizational loss or purposely damage the company by enforcing compliance policies. 

However, most companies are required by law to have their chief compliance officer sign an official document that says they’ll enforce the law first. In any case, the chief compliance officer also has to relay such compliance risks beforehand so every stakeholder involved can work on a solution. 

Therefore, chief compliance officers need excellent analytical skills to work out potential issues. 

What Does a Chief Compliance Officer Do – Duties and Tasks 

All chief compliance officers tend to work in slightly different capacities in organizations. Primarily, the industry matters a lot. For example, a chief compliance officer for a financial services company would have to understand various financial regulations, laws, and conduct internal audits, as per the law. 

Therefore, each industry has its compliance functions and regulations; thus, making each CCO’s job slightly different. 

In any case, the following duties, tasks, and responsibilities are what the typical chief compliance officer has to manage: 

  • Report directly to the CEO, CFO, and CIO relaying all compliance-related news and updates. 
  • Develop an annual compliance work plan that reflects the organization’s approach and characteristics. 
  • Define a certain level of knowledge and understanding of current and upcoming regulatory compliance standards across the company. This is to ensure all relevant stakeholders understand regulatory requirements and why the company is implementing them. 
  • If required, revise the company compliance plan due to changes in organizational direction, change in regulations, or other matters. 
  • Oversee, monitor, and manage the implementation of the company-wide compliance program
  • Read and analyze compliance reviews to better understand where the organization is lacking in terms of regulatory compliance. 
  • Guide, oversee, and manage the compliance teams and management to ensure they’re productive and effective. 
  • Provide guidance, training, and advice to various departments, including the financial, marketing, human resources, and other departments, to improve their understanding of the laws, rules, and regulations. 
  • Work with the general counsel to ensure all laws are taken into account. 
  • Develop risk assessments along with the risk officer to evaluate potential compliance issues. Take an active part in the risk management of such issues to ensure there are no ongoing issues. 

The duties, tasks, and responsibilities listed above can be expected from every chief compliance officer. However, each organization will have specific tasks. 

What Does a Chief Compliance Officer Do – Skills and Abilities 

A chief compliance officer can have different tasks and duties, but the skills, abilities, and qualifications required remain the same. However, different industries will expect the CCO to have knowledge of regulations pertaining to that specific industry. 

On average, the chief compliance officer is expected to have the following qualifications, skills, and abilities. 

  • A bachelor’s degree is required in a law-related field. A Juris Doctor degree is preferred but not necessarily required in most cases. 
  • At least seven to ten years of experience is needed in an organizational setting. Most companies prefer prior experience to be in the same industry to ensure that the CCO understands all the regulatory requirements from the start. 
  • Excellent knowledge of various federal and state regulations is required, with respect to the industry. For example, understanding the GDPR Data Privacy Regulations is usually expected from most CCOs. 
  • Ability to manage various computer-related tasks is necessary. The CCO should have strong computer skills and should be familiar with various Microsoft Office products, such as Word, Excel, Outlook, PowerPoint, and SharePoint. 
  • A good understanding of various organizational compliance standards is also needed. For example, the CCO should understand the state healthcare regulations, 401k requirements, and more. 
  • Superior research and analytical skills are needed to ensure you are up to date with the latest laws, rules, and regulations. 
  • Strong management and functional skills are needed to manage the compliance management team. 
  • The CCO should have a proactive approach to identifying risks and have problem-solving skills to develop creative solutions. 
  • Excellent communication skills are required to work with executives, senior management, and various stakeholders. 
  • Outstanding interpersonal skills are needed to develop good relations with regulatory bodies. 

The skills, qualifications, and abilities listed above are what the average chief compliance officer should have, but they may vary in different organizations. 

How to Become a Chief Compliance Officer 

According to Glassdoor, the average chief compliance officer salaries in the United States can be rounded up to $149,943. The typical range for the average salary is between $83,000 and $218,000, with the higher end being offered in cities, such as New York and Washington, DC.

The chief compliance officer salary tends to vary in different industries and organizations. For example, a CCO in the financial industry is bound to earn more because of all the additional regulations and compliance standards they have to take into account. Alternatively, a CCO in retail wouldn’t have to worry that much, thus earning slightly less. 

All chief compliance officer jobs are considered to be at the executive level. Therefore, it can take years to become a chief compliance officer. Typically, you start in the legal department as a risk officer, compliance officer, or attorney. You then work your way up to senior management, and then towards the chief compliance officer position. 

Some companies tend to hire outside counsel for compliance matters. As a result, some companies have contractual chief compliance officers. However, they only hire CCOs who have had years of experience in the same industry and in the same type of organization. However, most companies hire full-time CCOs to avoid over-the-top conflicts of interest. 

It’s advisable to brush up on industry-specific laws, rules, and regulations before applying for any chief compliance officer job. Furthermore, a working relationship with regulators, regulatory bodies, and the State Bar Association also helps. 

In any case, you should portray yourself as a by-the-book compliance officer that can help companies be more compliant without many issues. 

Becoming a Great Chief Compliance Officer 

Becoming a great chief compliance officer is about getting as much experience as you can in your industry. The more experience you have, the more you’ll understand the laws, rules, and regulations of that industry. Furthermore, you’ll develop a knack for developing great compliance policies and programs. 

More importantly, you’ll develop working relationships with the regulators, regulatory bodies, and other stakeholders. 

It’s always advisable to take the opinion of other compliance officers, attorneys, and the general counsel before recommending actions or developing compliance programs. 

Most importantly, it’s crucial to avoid any conflicts of interest and work in the interest of the law and the organization simultaneously.

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Chief Compliance Officer Role and Responsibilities

Every organization faces some level of risk due to several regulations and compliance standards. It’s imperative to ensure you’re completely compliant. That’s where compliance officers come in, and the chief compliance officer role manages them all. 

The chief compliance officer role and responsibilities tend to vary depending on the industry and organization. For example, corporate compliance tends to work differently than federal compliance. 

In this article, we’ll take a closer look at the chief compliance officer role and their responsibilities. 

Who is the Chief Compliance Officer? 

The chief compliance officer (CCO) monitors, oversees, and manages compliance issues and matters within their organization. 

The chief compliance officer makes sure that their organization is taking care of its regulatory compliance and regulatory requirements. Furthermore, they have to ensure that all organizational employees are in adherence to corporate policies and procedures. 

The compliance officer position was initially needed in heavily regulated industries such as healthcare and the financial services industry. However, other companies followed suit during the 2000s accounting scandals. During that time, the Sarbanes-Oxley Act was enforced, along with recommendations from the U.S. Federal Sentencing Guidelines. The chain of events eventually led to thousands of CCOs being appointed in across the United States. 

As a result, thousands of organizations in hubs such as New York, San Francisco, and other major cities created compliance departments. The compliance department works side by side with the legal department and senior management. Usually, the compliance department has several compliance officers working with different departments. 

At the top, the chief compliance officer manages all the other compliance officers while also assisting in business administration. 

The Chief Compliance Officer Role 

The chief compliance officer of an organization or agency is responsible for managing compliance risk, developing company policies for compliance, and monitoring compliance issues. 

Usually, the CCO role is on the executive level. Therefore, the chief compliance officer reports directly to the Chief Executive Officer (CEO). In some companies, the chief compliance officer also works with and reports to the Chief Financial Officer (CFO), Chief Risk Officer (CRO), and the Chief Information Officer (CIO). The chief compliance officer may also have to work with senior management and report to the board of directors in some companies. 

Each company’s compliance function determines its relation to the overall market and the government. Therefore, it’s imperative to fulfill all compliance requirements and legal requirements to maintain a good image with the regulatory bodies. 

As a result, some chief compliance officers tend to keep good relations with the regulators and compliance professionals. 

Each industry has different regulatory bodies, and there are different regulations for each organizational department. For example, the human resources department would have different compliance issues than the finance department. 

It’s the chief compliance officer’s job to make sure that all organizational departments are implementing the compliance program. The chief compliance officer role also involves doing compliance reviews to minimize compliance risk. 

However, the chief compliance officer can be privy to a conflict of interest. Conflicts of interest usually occur when you have a duty of implementing compliance plans, but it stands to hurt the organization somehow. The chief compliance officer has an ethical duty to always report any compliance issues. Especially if they’re part of the in-house compliance department. At that point, their primary directive is risk assessments and mitigation. 

In any case, CCOs have to maintain a certain level of confidentiality when working with organizations. 

Responsibilities of a Chief Compliance Officer 

Every chief compliance officer has to work in several capacities in different organizations. The responsibilities and duties mostly depend on the organization and the industry. For example, a chief compliance officer in the finance industry would have more responsibilities with tons of financial regulations, internal policies, internal audits, and other compliance requirements. 

In any case, the following responsibilities, tasks, and duties are what the typical chief compliance officer role entails. 

  • Reports directly to the executives, including the CEO, CFO, CIO, and the CRO relaying all news and updates related to compliance activities. 
  • Explain and define a certain level of knowledge of compliance standards that each employee should have in various departments. 
  • Help relevant parties understand certain applicable laws, such as the GDPR Data Privacy Regulations. 
  • Develop an annual compliance work plan, along with the general counsel that reflects the organizational approach. 
  • Revise existing compliance plans if there is any change in regulations, organizational direction, or any other relevant reason. 
  • Oversee the compliance program and plan and manage the internal controls. 
  • Work with the compliance and legal teams to ensure they’re on track and working efficiently. 
  • Provide guidance, advice, and training to all the departments regarding relevant laws, rules, regulations, and compliance standards. 
  • Read, review, and analyze compliance reviews to figure out if there are any compliance issues. After figuring out the issues, develop workable and effective solutions to counter the problem. 
  • Develop and manage risk assessments with the risk management department or the risk officer. Evaluate potential compliance issues, take part in risk management, and ensure there are no long-term problems. 

The responsibilities, tasks, and duties listed above are common for most chief compliance officers. However, you will find that some organizations will have industry-specific responsibilities too. Furthermore, each company tends to also have some organizational changes. 

How to Become a Chief Compliance Officer 

The chief compliance officer role is one of the highest positions in an organization next to the executives. According to Glassdoor, the average chief compliance officer salaries in the United States can be summed up to $149,943. Furthermore, the typical salary range for the chief compliance officer salary is between $83,000 and $218,000, with the higher range offered in cities such as New York and San Francisco. 

Considering that the chief compliance officer salary is very high compared to the national average, it’s safe to say that the position is essential. However, the salary also tends to change according to different industries and organizations. For example, chief compliance officers in a company in the financial sector would be paid more due to additional responsibilities and expectations. Alternatively, a CCO in a retail company may not be paid equally. 

The chief compliance officer role is an executive role where they work directly with the executives or with senior management. In any case, it can take years to reach a level where you can become a chief compliance officer. 

You have to start out as a compliance officer, risk officer, or an attorney. You can then make your way up to management and to the executive level. 

However, it’s best to have a Juris Doctor degree or a master’s degree in a related field. Along with years of experience, you need to be able to show your background that needs to be entirely law-related. 

You should always brush up on industry-specific laws, regulations, rules, and compliance standards. It’s crucial to have all the necessary information at the back of your mind as the chief compliance officer. 

Try and keep a good relationship with the State Bar Association, regulators, and the various regulatory bodies. Most importantly, practice compliance in an ethical way. 

Understanding the Chief Compliance Officer Role to Become a Great CCO 

Becoming a great chief compliance officer requires you to have a complete understanding of the law and compliance standards. It’s crucial to remember and understand the chief compliance officer role and all the responsibilities that come with it. 

Most importantly, you need to rack up a lot of experience to justify your worth. It’s best to focus your career on any one industry so you can learn as much as you can. Staying in the same industry helps you understand compliance better while giving you plenty of helpful resources. 

The working experience will eventually let you develop excellent compliance programs and policies for your organization. You’ll also be able to develop working relationships with various regulatory bodies, regulators, and other stakeholders. 

Furthermore, it’s also best to have a good relationship with other chief compliance officers, general counsel, and compliance officers. You can employ their help in drafting recommendations, advice, and developing compliance plans. 

Most importantly, it’s critical to avoid any conflicts of interest. It’s important to work ethically and in the interest of the organization that hired you.

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Association of Corporate Counsel Review: Worth it to Join?

Working in the legal world can be extremely hard, especially if you’re working your way up the ladder. Whether you are a general counsel, associate general counsel, deputy general counsel, or assistant general counsel, working for an organization or government agency might be hard, but getting a job can be harder. In such cases, joining the Association of Corporate Counsel (ACC) can give you the edge over other attorneys. 

However, the Association of Corporate Counsel is more than just a collection of corporate counsels. Some companies overlook the organization entirely, while others base their decisions on your membership. 

In this article, we’ll go over what the Association of Corporate Counsel is, what’ it’s all about, and whether it’s worth it to join. 

Let’s get started. 

What is the Association of Corporate Counsel (ACC)? 

The Association of Corporate Counsel is a professional association that serves the business interests of attorneys and counsels who practice law and litigation in the legal departments of corporations, agencies, and other private organizations. 

Founded in 1981, the Association of Corporate Counsel was initially named the American Corporate Counsel Association (ACCA). Currently, the Association of Corporate Counsel is present in 85 countries and has over 45,000 members working in more than 10,000 private-sector organizations around the world. 

Currently, the Association of Corporate Counsel is headquartered in Washington, DC, United States. According to the President and CEO, Veta T. Richardson, the ACC is a non-governmental organization (nonprofit organization) working as a ‘professional society.’ The association’s motto is, “By in-house counsel, for in-house counsel.”

All ACC members are divided into regional chapters. Members communicate and collaborate within those regional chapters in various practice area committees. 

In total, the Association of Corporate Counsel has more than 60 chapters around the globe. Global branches of corporate counsel associations have been joining the Association of Corporate Counsel over the years. Recently, the Australian Corporate Counsel Association joined the ACC to form ACC Australia. Similarly, there have been ACC Middle East, ACC Alberta, and ACC Singapore too. 

The primary directive of the Association of Corporate Counsel is to help resolve the issues of in-house counsel. That includes working on things such as attorney-client privilege, multi-jurisdictional practice, the right to offer pro bono services, and more. 

Overall, the Association of Corporate Counsel helps with the professional development of in-house counsel by providing information, training, online education, networking opportunities, and advocacy initiatives. 

The global legal association also works beyond borders; for example, if you move from the US to Hong Kong, rather than joining the ACC again, you just have to reach out to a different regional chapter. 

What’s the Difference Between Outside and In-House Counsel? 

There are many events and summits, such as the General Counsel Summit (GCS) around the world. Some people are often confused as to whether they should invest time in attending such events or join the Association of Corporate Counsel for all their professional development needs. 

The best way to differentiate is to understand the difference between in-house counsel and outside counsel. 

In-house counsel includes attorneys working in the law department, legal department, or in the legal team as house lawyers, general counsel, and more. They actively take part in site work, attend legal annual meetings, and are dedicated to the organization they’re working for. 

Alternatively, outside counsels are either independent contractors or law firms that provide legal services to organizations and agencies. Outside counsels aren’t necessarily liable for any company faults and work as a service only. Their job is to offer legal services, an excellent user experience, and a docket for redundant legal and compliance tasks. 

Generally, companies with small or no legal departments tend to hire outside counsel. At times, larger organizations hire outside counsel to assist with a large project, such as an expansion plan. 

However, most companies prefer having in-house counsel due to privacy matters. 

The Association of Corporate Counsel is specifically for in-house counsel who work in various organizations. Therefore, as an in-house counsel, you can consider being part of the Association of Corporate Counsel to enhance your understanding of the legal world. 

However, if you’re working as an outside counsel, you should focus on attending various events and summit to further your professional development. 

Benefits of Joining the Association of Corporate Counsel 

As an in-house counsel, you may face various issues, especially when it comes to networking. The Association of Corporate Counsel helps you develop a regional and global network while giving you the tools you need for a professional edge. 

The following are the benefits you get by joining the Association of Corporate Counsel. 

  • Tons of Resources: The Association of Corporate Counsel has a wide range of resources, from sample policies to various risk-management training tools. The resources are created and developed by fellow ACC members around the world, covering every in-house practice area. You can review resource listings by material type, source, interest areas, region, and audience. 
  • Global Networks: As a member of the ACC, you are open to 19 practice area-based networks that allow you to develop meaningful relationships with other in-house counsel. You can interact with fellow in-house lawyers, get online resources, discuss & share knowledge on online forums, and attend online education events. 
  • Education and Events: As a member, you get access to several in-person and online education opportunities. The Association of Corporate Counsel’s Annual Meeting is the largest gathering of in-house counsels, offering more than 100 CPD/CLE programs. 
  • Regional Chapters: ACC chapters divide various communities and regions to offer better networking opportunities in each region. 
  • The ACC Docket: The ACC Docket is the Association of Corporate Counsel’s award-winning publication that’s available in print and online. It offers a wide range of content that addresses various issues and challenges faced by in-house counsel and is published ten times a year. 
  • Legal Operations: The Association of Corporate Counsel’s legal operations section supports corporate legal operations professionals. The branch offers benchmarking, resources, and opportunities to collaborate, and serves as a unified voice to advance the business function. 

It’s advisable to go through the membership benefits FAQs

How Can You Join the Association of Corporate Counsel? 

The Association of Corporate Counsel is a global bar association that focuses on the interests of in-house counsel. Therefore, if you’re an attorney who works in an association, corporation, or any other private-sector organization, you can join the ACC. 

However, member eligibility is for individuals who are actively practicing law and are employed by an organization. Furthermore, the person shouldn’t have any enforcement, regulatory, or policymaking responsibilities to avoid any malpractice. You should either be a full-time in-house counsel or contract attorney on a long-term placement (five years or more). 

It’s advisable to opt for Continuing Legal Education (CLE), if eligible. It increases your chances of getting a membership. 

You may be ineligible for membership under the following conditions. 

  • If your responsibilities include marketing, sales, and business development in the legal world. 
  • If your responsibilities include providing or selling services to clients other than their employer. That includes attorneys working in law firms and temp agencies. 
  • Any organization (applying for corporate membership) that has enforcement, regulatory, or policymaking responsibilities. 

There are four different types of memberships you can apply for depending on your situation. 

  • Individual Membership – is for individual attorneys working in any organization who want to join the Association of Corporate Counsel. 
  • Corporate Membership – is for organizations that want to join the Association of Corporate Counsel. 
  • In-Transition Member – is for existing members who can continue their membership at a reduced price if they lose their in-house position. 
  • Retired Member – is for retired attorneys who wish to maintain their ACC membership at a reduced rate. 

You can check out the more information on each membership type here

Is it Worth it to Join the Association of Corporate Counsel?

As an attorney, you can use every opportunity to network with other lawyers and counsels. It’s a great way to learn, expand your horizons, and get new opportunities. 

It’s definitely worth it to join the Association of Corporate Counsel if you’re an in-house counsel. It helps with your professional development, offer networking opportunities, tons of resources, and more. 

If you’re an outside counsel, you can opt for other ways to learn. However, it’s advisable to briefly work as an in-house counsel and reap the benefits of the Association of Corporate Counsel. 

In any case, you should give joining the Association of Corporate Counsel a try, at the very least.

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3 Corporate Compliance Insights for 2021

Every private-sector organization needs to have clearly defined compliance programs to ensure regulatory compliance. However, compliance issues can arise even with a complete compliance department. That’s why it’s essential to keep an eye out for the latest corporate compliance insights. 

Corporate compliance insights tend to help companies in heavily-regulated industries where regulations and laws tend to be very dynamic. The constant expectation of a change leads compliance officers to resort to corporate compliance insights for better enforcement actions. 

In this article, we’ll go over what corporate compliance is, why it’s important, and the top corporate compliance insights for 2021. 

Let’s get started. 

What is Corporate Compliance, and Why is it Necessary? 

Corporate compliance is simply the act of complying with a governmental statute, law, rule, or regulation. The corporate world is regulated by the local, state, and the federal government to ensure fair business practice and business ethics. 

Corporate compliance includes several things, including both external and internal policies and procedures. Enforcing these policies and following compliance standards helps organizations avoid violating rules, laws, and regulations, so they’re not fined or a victim of a lawsuit. 

In any case, corporate compliance isn’t a one-off thing or even a yearly task; it’s an ongoing process. Therefore, companies need to imprint compliance in their corporate culture to ensure all compliance policies are taken into account. 

The local, state, and federal government continually updates the laws and regulations. For example, the SEC has made an effort to push FCPA enforcement (Foreign Corrupt Practices Act). 

There are various measures of compliance in different cases. For example, the Environmental, Social, and Corporate Governance (ESG) approach is about ensuring you’re adhering to sustainability and societal impact regulations. The GRC (Governance, Risk Management, and Compliance) was developed to help companies achieve their objectives while following the rules and regulations. The GDPR Data Privacy Regulations were developed to help companies and customers maintain a certain level of anonymity. 

Similarly, there are organizations such as the Society of Corporate Compliance & Ethics (SCCE) that provide resources to companies to ensure compliance and ethical business practices. 

The reason all of this exists and is necessary is because the laws, rules, and regulations are designed to protect businesses and people alike. For companies, a corporate compliance program is essential because it protects your business from potential abuse, discrimination, fraud, wastage, and other disrupting practices. 

Most importantly, staying compliant helps avoid fines, lawsuits, and helps your employees and customers feel safe. 

3 Top Corporate Compliance Insights for 2021 

While compliance is essential for each organization, most of them don’t have a proper system of dealing with it. It’s hard to list down the full article length of laws, rules, and regulations any company has to adhere to. That’s where compliance officers, corporate compliance officers, and general counsels come in. 

The United States government is always making minor adjustments to the regulations of all industries according to changing industry dynamics. That’s why you will often find a new case study, whitepapers, podcasts, webcasts, and webinars on regulation adjustments. 

That’s especially true for heavily-regulated industries, including the healthcare, insurance, and financial services industry. 

In any case, it’s crucial for all organizations to be proactive with corporate compliance. The best way to do so is to research and analyze corporate compliance insights. Getting corporate compliance insights lets you prepare for any potential law or regulation changes. 

While corporate compliance insights can be different for each industry, some of them apply to all industries. The following corporate compliance insights for 2021 will apply to most organizations in several industries. 

  1. Account for Loss Contingencies 

In a recent turn of events, the SEC charged BorgWarner for making material misstatements because they failed to account for certain liabilities. 

According to Ron Kral from CCI, ‘Hindsight is 20/20’ is a statement that all companies should understand when it comes to loss contingencies. It’s easy to define contingencies when they’ve settled over time, but companies should have an idea if something is supposed to happen. Otherwise, any loss contingencies are the result of a bad decision made by the company. 

The U.S. GAAP recognizes that all contingencies are estimates, at best. That means companies develop contingencies based on assumptions, current knowledge, and future expectations. If loss contingency estimates are performed correctly, a bad management estimate would never trigger any need for a restatement of financial statements. However, if a company fails to develop the right estimates or doesn’t disclose loss contingencies, it can automatically trigger a restatement. 

In any case, accounting for loss contingencies is crucial and making precise estimates is critical. It’s imperative that all relevant stakeholders carefully and thoroughly document all material accounting judgments and assumptions. 

The truth about a contingency always comes out. At that point, the first questions from regulators and regulatory bodies will be to ask when the company first learned of the contingency and whether they disclosed it in a timely manner. 

It’s best to ensure you have the right compliance officers, financial people, and other stakeholders, along with robust controls to mitigate any risks of restatements and contingencies. 

  1. More Demand for Compliance and Risk Outsourcing 

The coronavirus pandemic (COVID-19) has changed the dynamics of thousands of companies across the United States. However, it has also shown how companies respond to panics and lockdown. 

In this case, due to the pandemic, there has been a 25% increase in risk and compliance outsourcing. It’s especially true for heavily-regulated industries like the financial services industry, where risk and compliance teams have turned to trusted third parties. 

According to the ACA Compliance Group, the reason for this hike can’t be reduced to any single factor. However, the primary reason is that most companies have asked their risk and compliance leaders to do more with less. In other words, they’re reducing costs while employing cost-effective methods. 

The reason this is a significant corporate compliance insight is that the increase in compliance outsourcing isn’t limited to the pandemic. Once the pandemic is over and we move on to 2021, the trend of outsourcing will remain. The primary reason is that companies have gotten a significant return on investment at a fraction of the price. 

Rather than spending thousands of dollars on in-house compliance officers, risk officers, and counsel, they can outsource it all for a fraction of the cost. 

However, companies that deal with private information, state-of-the-art research, or similar situations would still prefer in-house employees. However, most of the other organizations would opt for a more cost-effective and efficient compliance and risk management process. 

According to ACA, the dependence on third-parties and technology can lead to up to 60% cost savings for all risk and compliance functions. It will also lead to greater agility and the ability to scale compliance operations. Most importantly, you can develop better resilience to cyber threats, third-party risk, and business disruption. 

  1. Cloud Technology Compliance Strategies 

Cloud technology has been one of the most disruptive technologies since the internet. It’s already playing a huge role in various industries and will only get more relevant in the future. 

However, the importance of cloud technology has been exponentially increasing in the last few years due to the emergence of thousands of startups. Furthermore, the sudden surge in remote work and the need for greater work mobility and agility with fewer costs has led to an even higher demand for cloud technology. 

As more companies adopt a more flexible working approach rather than being restricted to the office, the demand for cloud deployments will increase dramatically. As more companies have started to offer cloud services, the overall costs are reduced, too, opening up the option of cloud technology for smaller companies. 

Eventually, many companies that haven’t gone through the advanced digital transformation will do so very soon. That will lead to new laws, rules, and regulations for cloud technology (on top of the regulations already in place). 

It’s best for companies to start developing cloud technology compliance strategies beforehand to account for any upcoming laws, rules, and regulations. 

Using Corporate Compliance Insights Effectively 

It’s crucial to be proactive with your compliance duties. However, what’s more important is to accurately develop a compliance program that takes potential regulation changes into account. 

To do so, you not only require accurate corporate compliance insights, but you also need to analyze them according to your organization. 

To ensure you have the right idea, take the corporate compliance insights and use them to adjust your organization’s policies and compliance programs according to your specific industry.