A New Breed of CCO for a New Era: What Companies Need Now
More than a decade of regulations, from the Patriot Act to Sarbanes-Oxley to Dodd-Frank, have helped to position the Chief Compliance Officer (CCO) squarely in the spotlight as an official and crucial member of the senior team. Compliance has always been a robust function in regulated industries, such as healthcare and financial services, but recently it has assumed far greater importance in less-regulated industries, such as professional services and manufacturing. In fact, smart companies in all sectors are now recognizing that the expanded role of the CCO can provide real strategic value, far beyond the boundaries of the traditionally circumscribed compliance function.
Risk awareness and prevention planning are now integral to each part of the business, what is referred to as an enterprise-wide approach. This stands in stark contrast to the discrete compliance function of the past, where there was likely a compliance officer for each individual business, each disconnected from the other. The more innovative approach, according to an enterprise risk strategy, is to have a CCO, who is capable of seeing beyond silo walls and understands what each business needs in terms of proactively managing risk. This is executed in an integrated fashion, not merely reacting to and complying with regulations.