Levels of Responsibility of Compliance Officer

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compliance officer

Compliance is something that we are preached right from the beginning of our existence. Since humans began to settle in societies, they started to comply with the situations and surroundings. The same thing goes for three companies as well.

Business and companies abound in the era we are living in and every company/organization comes with their own set of rules and guidelines. Commendable management along with a strict code of conduct and business ethics is a must. Thus, there must be a person/regulating body, to safeguard and improve the policies for the employees and its management. A compliance officer is thus, extremely essential.

Role of a Compliance Officer

A compliance officer is one who looks after the compliance of a company. Evident to every company. It is a post reserved by every other company for employing the individuals who supervise whether the company complies with its external and internal regulatory and legal requirements. The team of the compliance officers report to a chief compliance officer, who is usually the head of the compliance department of the company.

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The compliance officers are entrusted with numerous duties and responsibilities in order to build an infallible, smooth and compliant management. In this process, they need to verify a range of processes and policies of the organization and amend them when required.

The main objective of the compliance department of a company is to assure that the company is equipped with internal controls that appropriately detect and tackle the risks it faces.

The sole motive of recruiting the Compliance officers is to develop an in-house team that effectively supports the key business areas. This is done with a view of making the company compliant with the relevant laws and regulations and the internal procedures. The compliance officer is most often the company’s general counsel; however, it varies with the company to company.

The Levels of Responsibility of a Compliance Officer

Though every company has its own team of compliance officers, the field of healthcare and banking happen to be the most crucial departments. The compliance officers are basically entrusted with the task of corporate governance and determine the management, direction and governance of an organization. Besides, they also oversee the relationship between the stakeholders and the other members of the company and its management. The Compliance officers report their work to the CEO or COO.

According to the International Compliance Association, the responsibilities of a compliance officer can be subdivided into two distinctive levels:

  • Level 1: Compliance with the external rules. The rules that are enforced upon an organization as a whole.
  • Level 2: Compliance with internal systems of control. The controls that are enforced upon a company so that it can hope for absolute compliance with the externally imposed rules.

Raising awareness of risk, conducting proper training, and framing advice are critical elements of the CO’s mission. Therefore, an ideal Compliance Officer “has the demanding and complex task of fulfilling all these roles,” going by the words of Robert Mossman.

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