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Best Practice and Delivering Value – The Future for Compliance

Conclusion – the imperative for change

We have outlined in this paper the drivers for change in Compliance Departments to achieve significant value creation for their firms. We have also discussed many of the aspects of Compliance Departments that have already been implemented or are well on the road to completing this transformation. These aspects constitute best practice in the Compliance Department.

“Good Compliance is Good Business.”

Stephen L. Hammerman, Merril Lynch & Co Inc6

The greatest catalyst for bringing about the change to such best practice is alignment with the business strategy and the expectations of the major stakeholders. Behind that alignment the refocusing of resources and skills offers the next greatest lever to the Compliance Director to effect the transformation. However the transformation does not, and should not, end there. As we have outlined in this paper, the change in the Compliance function should be all encompassing and pervasive in order that senior management and the organisation achieve the greatest benefit. Against achieving the outward “Step Change”, Compliance Departments must also be able to demonstrate their contribution towards achieving both a compliant culture and actual Compliance

  • the importance of which can never be overstated.

In order to achieve these twin goals, as we have discussed, Compliance Departments must also re-equip and re-skill themselves with new frameworks and methodologies (for risk assessment), enhanced management information (for measurement and monitoring) and new technology (for reporting and demonstrating Compliance).

Group Compliance Directors are uniquely poised to become business consultants and value creators for their CEOs. For many, this change of role may be a challenge that they are reluctant to take or find unsettling. However, this opens up new frontiers and challenges for the Compliance profession to gain greater management exposure, enrich its skill base and contribute to the business success of tomorrow.

6 Symposium on Crime and Punishment in the US, September 1995, Washington DC.



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