The Future for Compliance – Best Practice and Delivering Value
This is where Compliance Directors need to focus imaginatively and pro-actively on their role in the compliance conceptual framework that we have illustrated in the diagram below.
Articulate risk strategy
Set up risk framework
Oversee effectiveness of framework
Manage risks & controls
Risk Management Group
Critique/ compare monitor
Individuals/Business Unit Managers
Ownership/accountability for risks Effective controls Integrate into daily activities
As well as being described as a compliance conceptual framework, this diagram could also be labelled the continuous life-cycle of compliance, which needs to co-exist alongside the four aspects of operation that we have already identified. Those Compliance Directors, operating in the middle of the arc labelled “Strategic focus and action”, are generally the most influential in their organisation, but to achieve this they will need to feel sure that their colleagues are playing an active part in the other two arcs, otherwise the life-cycle will fail.