ConfidentNow Webinar Series : Top 3 Challenges Faced By Global Chief Compliance Officers
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The first of the four part webinar series on Agile Compliance presented by Confident Governance Chairman Bhavesh Bhagat and Crossland Advisors Founder Jay Crossland. The webinar talks about the significant challenges faced by Compliance officers worldwide.
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ConfidentNow Webinar Series : Top 3 Challenges Faced By Global Chief Compliance Officers
- 1. ConfidentNow Webinar Series Top 3 Challenges faced by global Chief Compliance Officers View the full recording here : https://Bit.ly/cgwebinar_top3compliance
- 2. Speakers Bhavesh C. Bhagat CGEIT, CISM, MBA, BE Chairman, Confident Governance Jay Crossland CISA, MBA CEO and Founder, Crossland Advisors, Inc. /bhaveshbhagat /jay-crossland-1a08333 @bbhagat bb@confidentgovernance.com Jay.Crossland@crosslandadvisors.com
- 3. Schedule for Subsequent Webinars in ConfidentNow Webinar Series on Compliance 22nd September 2016, Thursday Redefining Compliance processes : Conventional Tools Vs Agile Tools Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844B3E 10th November 2016, Thursday Leveraging Agility in Compliance through Dynamic Reporting & Effective ERM Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844A39 8th December 2016, Thursday Efficiency in Compliance : Charting out Robust & Innovative Strategies for the dynamic Compliance Officers Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844A3A
- 4. Key Takeaway In this first of our four-part Webinar series on Compliance, you will hear insights from Industry Experts on the Top 3 Challenges faced by Compliance Officers worldwide
- 5. Agenda • Challenge 1 : Rapid Velocity of Change • Challenge 2 : Lack of Transparency • Challenge 3 : Shifting Focus To Keep Up With Evolving Risks
- 6. Challenge 1 : Rapid Velocity of Change
- 7. Challenge 1 : Rapid Velocity of Change • The regulatory environment is continually changing at Federal, State and Local levels • Organizations are required to have Compliance and Governance Policies that are always up-to-date • The rapid pace of change in Technology • Complex Employee demographics
- 8. Challenge 2 : Lack of Transparency
- 9. As Per Compliance Week’s Recent “Compliance Trends Survey” What Methodology Does Your Organization Follow For Compliance Processes ? 76 18 6 Centralized De-centralized No real Compliance Function
- 10. Challenge 2 : Lack of Transparency • Lack of visibility & continuity between various Businesses, Departments & Locations • Inadequate or Inconsistent reporting • Compliance data is often difficult to obtain because it comes from incongruent parts of the organization
- 11. As Per A Recent PwC Survey on Energy and Utilities Compliance Functions Who takes care of the Compliance Program In your Organization ? 34 66 Dedicated Compliance group Compliance Committee members with Multiple roles in the Organization
- 12. Challenge 3 : Shifting Focus To Keep Up With Changing Risks
- 13. Challenge 3 : Shifting Focus To Keep Up With Evolving Risks • The New Normal has changed • However the focus of Compliance Officers has not shifted • Failing to optimise & decipher this level of risk creates a major challenge
- 14. bb@confidentgovernance.com sandy.carter@confidentgovernance.com jay.crossland@crosslandadvisors.com For questions and further information, contact us at : In the subsequent Webinars we will discuss Redefining Compliance processes and overcoming the Challenges we discussed in today’s Webinar. Stay tuned and give us your feedback/questions here. View the full recording here : https://Bit.ly/cgwebinar_top3compliance
- 15. Schedule for Subsequent Webinars in ConfidentNow Webinar Series on Compliance 22nd September 2016, Thursday Redefining Compliance processes : Conventional Tools Vs Agile Tools Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844B3E 10th November 2016, Thursday Leveraging Agility in Compliance through Dynamic Reporting & Effective ERM Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844A39 8th December 2016, Thursday Efficiency in Compliance : Charting out Robust & Innovative Strategies for the dynamic Compliance Officers Regn : https://www.anymeeting.com/AccountManager/RegEv.aspx?PIID=EC57DF82844A3A
- 16. Contact Us Bhavesh C. Bhagat CGEIT, CISM, MBA, BE Chairman, Confident Governance Jay Crossland CISA, MBA CEO and Founder, Crossland Advisors, Inc. /bhaveshbhagat /jay-crossland-1a08333 @bbhagat bb@confidentgovernance.com Jay.Crossland@crosslandadvisors.com
Editor's Notes
- Rapid change in Workforce Per Brookings, 75% of worlds working population by 2025 would be Millennials. So it’s a generational evolution for Businesses globally While 75% of new workforce will be Millennials, almost 100% of all of them will be Technology dependent. Audit and Compliance processes need to adjust Work for Millennials is not life, it is just one thing amongst their main pursuit which is in general idealist well being in life Generations across human history have not had special skills, rather they are shaped by special societal circumstances As an Entrepreneur and Technology Angel Investor, we monitor business cycles before general business becomes aware of those, Compliance professionals need to do the same. They need to be a step ahead – alternative is Obsolescence. Rapid change in Technology By 2020 a household with 2 members would have 50 connected devices per OECD Each new device is like stereo transmitter but its 24x7. Do companies understand risk of constant outbound bits ? In the realm of IoT, Robotics and AI, IT is irrelevant. Technology is inbuilt in every piece of a process To overcome this Challenge, the “Tone at the Top” is very important. Discuss example of the conversation with the President of a Fast Growing Oil and Energy Company. He said “Compliance is exciting and we want to make it our Competitive edge. To achieve this we are making all our Processes efficient and effective and also choosing the right people for these processes”.
- In many cases, regulations are having a significant impact on how business operates; some of this is helpful and some is not. Process documentation, such as policies and procedures often fails to keep pace with change but regulators expect policies to be up-to-date at any given point in time. As a best practice, policies and procedures should be reviewed and updated as part of any new process roll-out or process change; just build it into the change process or methodology. Ever changing technology is also stressing the financial and human resources of many organizations. Strategic organizational decisions must include the impact on and from regulations and technology. While technology can sometimes help with the regulatory burden, it comes at a cost. Also, technology should not be seen as the solution to regulatory challenges but instead a tool to help achieve regulatory compliance. When Sarbanes Oxley was first introduced, I saw far too many organizations rush to purchase a tool. They quickly realized that the tool was just that and they still had significant effort to design and develop controls that could be tracked with the tool. In some cases the tool purchased did not fit the SOX compliance process for that organization and had to be scrapped. Employee demographics…
- According to Compliance Week’s “Compliance Trends Survey 2013,” 76% of the nearly 200 respondents said they employ a centralized structure for the compliance department, where one CCO oversees business-unit leaders. Another 18% indicated using a decentralized structure of local compliance officers reporting to local business unit leaders.
- Being rigorous and proactive in the application of transparency is vital for true compliance Transparency can give companies a competitive advantage, both when extraordinary circumstances arise and in daily activities. Companies must be in close compliance with legal frameworks and regulations, or risk running into big problems. The good news is that transparency can make adhering to policies and codes much easier, reducing the amount of time it takes to manage the often complex process. Almost every organization is seeing compliance requirements grow exponentially. From financial reporting to HIPAA to Dodd Frank, depending on the industry, compliance may seem to be one of the primary services of an organization. In fact, some of my clients in health care related fields often joke that compliance is rapidly becoming their largest service that they can’t sell. Because of compliance demands and lean resources, many organizations have delegated dealing with compliance across the various businesses, departments and locations. This has resulted in compliance becoming a part-time job for many across the organization. Often, the legal department may be responsible for overall compliance. Few organizations want to spend money to fully staff a comprehensive compliance group. We are also seeing Internal Audit getting more involved in compliance monitoring. Completely delegating compliance efforts results in not knowing the full impact of compliance, inadequate or inconsistent reporting and not really knowing if all compliance requirements are being met. There may also be overlaps in efforts, unknown dependencies that are not being considered or remediation happening in a vacuum. Other negative concerns from a decentralized compliance approach are: Risk is not fully incorporated Compliance methods are not comprehensive or are too simplistic Compliance efforts are not regularly scheduled or monitored Compliance testing is not formalized and not linked to risks Compliance testing is inconsistent No shared or mature tools The key take-away here is that compliance should be ingrained in the culture of the organization with a common message being disseminated throughout. This is effectively done through a centralized group responsible for all compliance in an organization. While it may seem cost efficient to fully delegate compliance efforts, this fragmented approach may actually be using more resources than would be needed by a fully staffed compliance group. But the real risk is the adequacy of addressing compliance: is it an after thought or "check the box" exercise, or is it part of every strategic decision.
- Pwc Survey : Profile of energy and utilities compliance functions According to the survey, 68% of energy and utility respondents said they have a CCO/HoC in place. Further breakdown indicates that only 34% of CCOs/HoCs in the energy and utilities sector are dedicated solely to compliance, whereas 66% of them have multiple responsibilities or hold multiple roles in their organizations. Establishing a standalone CCO/HoC position may become an increasing priority in the energy and utilities sector, considering that industryspecific regulations dominate as the number one concern throughout the industry.
- Nature of Risks has changed as Business Processes have changed How the workforce is using Technology has changed (Discuss BYOD) There can no longer be any business which is blase about its attitude to risk. From terrorism to natural disasters, from a debilitating global financial crisis to geo-political turmoil, risk continues as a fact of human life. And at a "micro" level, modern organisations deal constantly with a minefield of risks, ranging from "digital disruption" to mismanagement of their own forecasting and cash flow decision-making, to compliance breaches and fraud, product performance, customer and client consolidation, credit defaults, regulatory, tax and market changes, human resources risk, product risk and ethical risk, including that potentially coming from well up the supply chain. The "velocity" of risk and the interplay of a global marketplace effectively constitutes new varieties of risk, It comes back to thinking about risk in both the upside and the downside, because you need to take on board risk to be in business.That's what business is, it's consciously taking on-board risk, and evolving and changing, and turning risks into opportunities. Technology is no different – it is an opportunity, and with it comes a threat. By being in business you're taking on a certain amount of risk: it's failing to optimise and fully understanding this level of risk that lets companies down.