Governance, Risk & Compliance: GRC
Compliance Officers Must Reinvent Themselves. Here’s How.
Compliance is about more than just following rules. It’s about shaping the future of corporate integrity. In celebration of SAI360’s National Compliance Officer Day, Tamara Ginciene, Founding Partner of Hinz Governance & Business Integrity, chatted with SAI360 to explore the transforming role of compliance. She says there’s a compliance evolution happening now. One that demands a new breed of compliance professionals who can adapt quickly and think holistically. Ginciene highlights a critical shift: Compliance Officers are no longer confined to managing solely corruption risks.
It’s critical to keep an open mind regarding other sorts of risks that can impact a company’s reputation. Compliance Officers must have keen eyes. They must expand their skills beyond corruption, into cybersecurity, human rights, environmental stewardship, and the broader ESG framework.
Where is the Most Opportunity for Transformation?
There is an opportunity for Compliance Officers to recalculate routes and gain acknowledgment in other business areas. This way, they continue to demonstrate relevance and showcase their value to ensuring sustainability to Compliance Programs (and their organizations overall) going forward. Companies who are considering reducing compliance budgets are short-sighted and should consider the long game. Regulators are enhancing their oversight of due diligence and incentivizing employees to report wrongdoings straightforwardly to regulators. In some situations, companies are not given an opportunity to investigate and take action. Limiting resources within Compliance Programs could erase years of progress and ultimately expose a company’s reputation to unnecessary and costly risk.
What’s Next?
Compliance teams must take on new workplace challenges like complex social issues including moral and sexual harassment. This job needs both legal smarts and people skills. Ultimately, it’s a balancing act between knowing the law and understanding emotions.
Below, we discuss the challenges Compliance Officers face, the need for sustainable compliance programs, and the importance of adapting compliance strategies to new risks such as cybersecurity, ESG, and harassment. We also highlight innovative approaches Compliance Officers can take to stay relevant and ensure their programs contribute to the long-term sustainability of their organizations.
Q&A on the Present and Future of Compliance
SAI360: How is the role of Compliance Officers shifting?
Ginciene: We are experiencing a shift in our responsibilities. While corruption risk is still a concern, it is no longer the sole focus. Now, we need to build sustainable companies and compliance programs that address human rights and environmental concerns. And companies and programs that align with Environmental, Social, and Governance (ESG) frameworks—mainly considering the Corporate Sustainability Due Diligence Directive CSDDD in Europe that will impact companies globally and their chain of suppliers. This requires Compliance Officers to reinvent themselves and adapt to the new landscape. What’s needed is an appropriate level of due diligence on third parties. And auditing these parties to ensure they are also prepared to prevent risks related mainly to human rights, environmental concerns, and corporate governance.
Reinvention is key to staying in the game.
SAI360: How have you personally adapted to these changes?
Ginciene: I have 18 years of corporate experience and know firsthand the many law enforcement challenges companies face, including independent monitorship. After they reconfigured my Compliance department structure, I started my own consulting company. I now offer analytics and help organizations build more sustainable compliance programs. Reinvention is key to staying in the game, whether that’s through consulting or contributing to audit and/or integrity committees.
SAI360: That’s very bold of you. What areas of compliance are becoming more prominent now, beyond corruption risks?
Ginciene: We’re seeing a significant focus on moral and sexual harassment, especially here in Brazil where I am based. Companies are being proactive by implementing training programs and establishing hotline channels to report these issues. This is driven by both regulation and the need for companies to foster a safer workplace environment.
With the rise in cyber-attacks, boards are prioritizing it as a top risk, surpassing corruption.
Additionally, cybersecurity is a growing concern. With the rise in cyber-attacks, boards are prioritizing it as a top risk, surpassing corruption.
SAI360: How are companies responding to this new emphasis on cybersecurity?
Ginciene: Boards are taking cybersecurity seriously. They recognize it as a major threat to their operations. They’re investing in preventive measures. They are ensuring they have the necessary protocols in place to respond to attacks. Compliance Officers play a key role in this by providing training and ensuring all employees are aware of risks and how to mitigate them.
SAI360: With all these changes underway, how do you see the future of compliance unfolding?
Ginciene: I believe compliance functions will not disappear but will need to adapt. We must shift our focus to reputation management and demonstrate the value of compliance to the business. Especially with the recent DOJ Pilot Program that will be rewarding employees who might report wrongdoings straight to authorities. And the CSDDD requiring big companies to adapt their Integrity/Compliance Programs to enhance oversight to third parties, prevent ESG risks, and require clear action plans for remediation in case of damages potentially caused to stakeholders.
Compliance Officers must reinvent their roles to remain relevant.
Compliance Officers must reinvent their roles to remain relevant, whether through stronger partnerships with suppliers or ensuring that diversity and sustainability are part of the company’s long-term goals. It’s about being more strategic and forward-thinking.
Interested in learning how SAI360 is partnering with Compliance Officers to protect their organizations? Let’s start a conversation.
