What Does a Deputy Chief Compliance Officer Do?

What Does a Deputy Chief Compliance Officer Do?

The Deputy Chief Compliance Officer ensures that all employees adhere to the compliance of all legal and regulatory requirements, including internal procedures and policies, and resolves all corporate compliance related issues within the organization. However, this is just one of the many important responsibilities of a deputy chief compliance officer. Since their job description entails a lot, it is difficult to summarize their duties and responsibilities in only a few words. 

Therefore, if you’re a student deciding on a career, a recruiter considering your next hire, or an employee wondering what it is you need to become a successful deputy chief compliance officer, keep reading.

In this article, we’ll take you through:

  • Who a Deputy Chief Compliance Officer is 
  • Their typical roles and responsibilities in an organization 
  • How to become a successful Deputy Chief Compliance Officer 
  • Average salary estimates in the United States

 

Let’s get started

Who is a Deputy Chief Compliance Officer?

Deputy Chief Compliance Officers are deputy heads of the compliance department and are responsible for managing the entire organization for compliance related activities and report back to the HODs (Chief Compliance Officer) and upper management. 

Since, they work in a diverse environment with ever evolving, legal and regulatory, social and economic issues and guidelines, their main responsibility is to constantly design, review, and modify compliance programs in light of complex rules and regulations.

However, this is just one of their many responsibilities. In the light of the changes in the global economy, deputy chief compliance officer roles have shifted from just reporting compliance issues to legal authority such as the Deputy General Counsel towards achieving complete transparency within the entire organization, ultimately building a culture of integrity.

Deputy chief compliance officers are continuously facing risks pertaining to the organization’s reputation and internal control (such as, noncompliance of employees, bribery, cybersecurity risks) and finding effective ways to raise awareness, prevent, and mitigate them. 

They not only regulate organization’s culture and behaviour by effectively communicating vision and mission of compliance programs but are also involved in all strategic decisions of the organization.  

Nevertheless, not all organizations have the same job descriptions for their deputy chief compliance officers. Most still have deputy CCOs with legal backgrounds, who are restricted to enforcement and compliance matters, on the other hand, large organizations who are operating internationally have promoted their deputy CCOs towards executive level positions. They have increased authority, lead cross-functional teams, and have a valuable say in strategic key stakeholders decisions. 

It is important to note, the only important difference Deputy Chief Compliance Officers share with the role of a Chief Compliance Officer (sometimes known as Corporate Compliance Officer) is their focus areas. They work collaboratively in all compliance related matters, however, Chief Compliance Officers focus on the strategy aspect (theoretical) and Deputy Chief Compliance Officer focus on ensuring the implementation (practical). 

In many organizations with no Deputy Chief Compliance Officer, CCOs take the role of both. 

What Does a Deputy Chief Compliance Officer Do? [Typical Roles and Responsibilities]

As mentioned earlier, deputy CCOs collaboratively work with Chief Compliance Officers on strategy and decisions, however, their focus is on the implementation of compliance related activities.

Having said that, the typical duties and responsibilities of a Deputy Chief Compliance Officer job title in an organization include: 

 

  • Define the requirements for regulatory compliance and develop compliance risk assessment programs according to annual compliance plan. 
  • Identify risks and recommend solutions and implementation strategies for compliance issues to management and employees of all business units.

 

    • Provide compliance training to compliance managers on effectively carrying compliance programs for all employees in order for them to be knowledgeable of organizational policies, and federal/state standards.

 

  • Review and revise compliance policies on a regular basis and coordinate with other departments including internal audit and risk management.
  • Supervise, guide, and counsel compliance teams and monitor their implementation of key compliance strategies, initiatives and action plans.
  • Oversee internal and external funding sources and budgeting within compliance units to ensure successful implementation of compliance mission.
  • Consult and report to chief compliance officer regarding all compliance related initiatives, corrective actions, and reviews. 

 

  • Document, maintain and present timely compliance reports and collaborate with senior management of other departments especially, chief financial officer (CFO), chief ethics officer (CXO), chief information security officer (CISO), anti-money laundering (AML) compliance officer, and board members. 

Again – all organizations have varying job functions for their deputy chief compliance officers, therefore it is advisable to modify the list according to your organization needs.

What Skills/Abilities Does a Deputy Chief Compliance Officer Need?

If you have access, a right in decision making, and direct communication with the board members of the company, your skills and abilities must reflect your job position.

Considering that, its needless to say that deputy CCOs have strong compliance expertise. 

To be specific, deputy chief compliance officers should have the following skills:

  • Leadership Skills – they are responsible and accountable for the entire compliance department. They plan, develop, and lead cross-functional teams, and ensure implementation of all compliance procedures in the entire organization. For that purpose, they have expert level leadership skills, including empathy and a strong influential/charismatic presence. 
  • Problem Solving and Analytical Skills – deputy CCOs are attentive to details, observant and quick at resolving problems, in order to recognize and deal with the day to day compliance related issues. 
  • Communication Skills – since they are expected to communicate with all level of employees including key stakeholders, they have excellent writing (developing compliance plans and reporting purposes) and verbal communication skills in order to effectively perform job functions along with persuading the entire organization to do the same.  
  • Organizational Skills – the deputy chief compliance officer is responsible to create the entire organization culture and relays guidelines for appropriate behavior and conduct, which cannot be possible without organization skills. They ensure everyone employee feels valued, and effective communication and transparent collaborative practices are established in the entire organization.  

In addition to the above, deputy chief compliance officers also know how to set budgets and create compliance strategies accordingly.

How to Become a Deputy Chief Compliance Officer? [Qualifications and Experience]

The growing need for strong compliance departments in organizations has subsequently created a need for departmental heads to be subject matter experts in not just corporate compliance but all relevant corporate fields, including business administration, human resources, auditing, finance, and the list goes on. 

Considering that, here is a general roadmap for anyone wishing to climb the deputy chief compliance officer ladder:

  • Academic Requirements – a deputy chief compliance officer should at least have a bachelor’s degree in a relevant field (law, finance, human resources, or business administration) depending on the industry they work in (such as, healthcare, food, banking), with a strong preference for a juris doctor (JD) degree considering the major nature of their work (enforcement of all applicable laws and regulations).
  • Experience – deputy chief compliance officers have at least 10 years of compliance experience within industries such as, compliance consultancy, government law and regulatory bodies, financial services, or the same years of experience in similar jobs. 
  • Additional Credentials – finally, having additional compliance certification in relevant areas is a must, such as, Certified Compliance & Ethics Professional (CCEP), Certified Internal Auditor, Certified Public Accountant (CPA). The type of certification a deputy chief compliance officer has depends on the type of industry they work in. 

Apart from these, it’s a given that deputy chief compliance officers are well versed and knows how to interpret their industry-specific federal and state laws and regulations, policies and procedures. 

How Much Do Deputy Chief Compliance Officer Earn?

Since, Deputy Chief Compliance officer is a senior-level, full time job position responsible for all compliance functions, employers make sure they are compensated well for their hard work.

However, the salaries vary according to the job type (level of responsibility), type of industry, and size of the organization.

To give you a clear idea, here are some Deputy Chief Compliance Officer salary estimates gathered from reliable platforms:

  • Glassdoor – according to Glassdoor, Deputy Chief Compliance Officer earn anywhere between $56,000 to $120,000 per year. The yearly average is $82,218.
  • ZipRecruiter – as per the data collected on ZipRecruiter, on average, a Deputy Chief Compliance Officer can earn between $23,500 to $221,500 per year (with the national average of $111,474). Furthermore, according to salary reports the average in major states such as New York, San Francisco, Washington DC and Los Angeles fall within $80,000 to $90,000.
  • Indeed – as per the data collected on Indeed, the average salary for Deputy Chief Compliance Officer ranges from approximately $117,478 per year. 

Apart from salary reports, if you’re looking for job opportunities, these platforms also keep you updated with job alerts on deputy chief compliance officer job postings. 

Wrapping it Up

Every organization, regardless of their size, needs a compliance team if not an entire department in order to ensure integrity and create a healthy organization culture. Therefore, it’s safe to say, that a deputy chief compliance officer is an integral job title to an organization. 

While the roles, responsibilities, and duties aren’t exactly the same across all industries, however, the deputy chief compliance officer, along with the CCO, leads the compliance department and aligns organization strategy, vision and mission according to the laws and regulations ascribed by the government bodies.

Keeping that in mind, if you wish to assume such a difficult role, it is crucial for you to develop the relevant ​skills, and acquire the minimum experience needed to qualify for the job title.

Published in Career Path, Job Descriptions

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