For organizations in any industry, managing risk and compliance is no different – maintaining communication lines between different departments is crucial. With the increasing number of regulatory requirements and enforcement actions, there has been a growing attention to business ethics overall around business operations, data retention and other business practices. Collaboration between legal, risk, and compliance is key for any enterprise to proactively address today’s regulatory environment.
A few questions I’ve been asking clients are: Where exactly does your compliance team sit within your organization? Should compliance be its own function for ethical reasons? If so, then how do you enable visibility?
Ultimately, what matters is increasing visibility and making people across the company aware of how their actions impact the company’s level of compliance and risk management. In trying to answer these questions, companies have a variety of structures, but the common thread is that collaboration between the groups is a key to success. Here are three examples of where compliance can fit within an organization:
1) Compliance Under the Legal Department
2) Compliance is Split Between Departments
3) A Centralized & Decentralized Compliance Function
It is worth asking yourself the question, how well does your business collaborate in areas of compliance and risk? And how might your organizational structure impact this? Regardless of the organizational structure, centralized or not, you need cross-functional collaboration and communication to successfully achieve business objectives while addressing risk and acting with integrity.
At the last Compliance Week conference in Washington D.C., we led an in-depth panel discussion on the topic of bridging the gap between legal, risk, and compliance with panelists from Morae Global, HMSHost, Systemax, Exelon and Mitratech. From that session, we’ve co-developed an e-book that talks about these issues as well as cultivating a culture of compliance and how the maturity of compliance in an organization affects collaboration and communication. If you’d like to learn more, I highly suggest you download the e-book, Improving Collaboration between Legal, Compliance & Operational Risk, today.