What does the Compliance Officer (CO) do?
The CO (literally “Compliance Officer”) is a figure that comes out from a classification that belongs to the business world.
The compliance function:
To speak about the figure of the compliance officer, it is necessary to first address the issue of the compliance function.
It is a specific corporate function that aims to strengthen the organizational and operational controls of the companies in order to ensure full compliance with the ethical commitments assumed and required by the organization, but also those stipulated by the law itself. such as regulations and internal processes, which ordinate the activity carried out and the relationships with its stakeholders, seeking to guarantee full and continuous compliance.
One of the most effective ways to fulfill the CO function is the establishment of a Compliance Program, or as it has come to be known locally, Integrity Program. In our country, its content is regulated by Law No. 27,401, since March 2018.
Compliance should be understood as a set of rules that the company decides to adopt based on the application of values and ethical principles within an organization.
In this sense, it can be said that compliance is the function aimed at preventing and reducing risks of a legal, tax, financial and reputational nature, derived from the violation of laws and regulations, corporate dispositions and social norms.
Implementing the CO function aims to achieve that the organization achieves its fundamental objectives in order to ensure regulatory compliance, preserving the good name of the entity and the public’s confidence in its operational and management correctness and thus creating corporate value.
For the OC function to be effective, it is essential that it be functionally independent from the other corporate operating areas and separate from the units dedicated to performing internal controls, reporting at the highest level within the organization.
The CO can be internal to the company or outsourced. In the first case, you can set up a dedicated structure within the company. In the second case, the compliance activity can be outsourced and entrusted to a professional and independent third party.
Independence is an essential characteristic of the function, which means that the OC must be autonomous with respect to other operational and internal control structures, without prejudice to the strong interrelationships that it can – and must – maintain with other areas of the company. , that enable compliance to contribute effectively to the governance of the company.
The role of the Compliance Officer (CO)
The CO is responsible for coordinating the compliance function within a business structure.
This figure can even be part of the Board of Directors.
The CO does not need to be an expert in all business fields that may be subject to risk, but must act as Coordinator and, through constant dialogue with other company departments, systematically develop ad hoc processes, to ensure that the gears of the compliance function operate unimpeded.
For the correct performance of the tasks required by his role, it is understood that the OC must have a series of specific professional and personal characteristics: first, he must demonstrate a high degree of flexibility, to face potential new threats that could affect the progress of the business.
In addition, they must have communicational and persuasive skills, since they will be called to facilitate dialogue between the different sectors of the company. Finally, it must be endowed with great authority, which allows it to act in the decision-making bodies of the company and ensure that compliance issues and ethical principles are taken into account in business decision-making.
At G5 Integritas, we can help your organization develop or review the Integrity Program tailored for it. Contact us for more information through the e-mail [email protected], or by visiting our website http://www.g5integritas.com