What Is a CCO? 4 Responsibilities of a Chief Compliance Officer

A chief compliance officer (CCO) is responsible for developing and implementing a company’s compliance program and meeting regulatory requirements. Though it shares an acronym with a company’s chief commercial officer (also known as a chief business officer or CBO), a chief compliance officer’s role focuses entirely on corporate compliance and making sure a company adheres to all applicable laws. The CCO collaborates closely with the compliance department and legal department to ensure the company has an effective compliance program and that all company employees understand and adhere to the policies. Additionally, the CCO oversees compliance managers in other departments.

The chief compliance officer position is typically a full-time senior-level, executive-level, or C-suite position and reports directly to the company's chief executive officer (CEO). The CCO collaborates with the chief financial officer (CFO) and chief risk officer (CRO) and provides reports for the company’s board of directors or stakeholders. The CCO assures senior management that the company’s compliance initiatives are effective and reports on compliance risk assessments and compliance issues. A chief compliance officer salary depends on the company and your level of experience.

A chief compliance officer role includes numerous responsibilities regarding a company’s compliance program. Some of the key duties found in a CCO’s job description include:

1. 1. Establishing and communicating plans: The CCO is responsible for defining compliance standards for the company and articulating those to management. They collaborate with the general counsel to develop an annual compliance plan or revise an existing program, reviewing new information from regulatory bodies to keep the plan up to date.
2. 2. Managing compliance policies and training: A COO’s job includes providing compliance training to all departments. They work closely with the company’s other compliance professionals, human resources, and the legal department to implement trainings and ensure completion.
3. 3. Reporting on potential conflicts of interest and compliance updates: In addition to reporting compliance issues related to employees to senior management, the CCO must report any potential conflicts of interest or negative business results that arise from a new or revised compliance plan. If an amendment to the compliance plan meets the requirements of regulatory bodies but negatively impacts the company’s bottom line, the CCO explains how that detrimental change to the corporate governance ultimately helps avoid noncompliance.
4. 4. Reviewing compliance issues: Risk management is a key compliance function. The CCO reviews reports and internal audits to assess whether company policies meet or fall outside regulatory compliance requirements. They work closely with the top risk manager and their risk management team to evaluate any problems and develop solutions.

There are several qualifications required for a CCO role, including:

• Interpersonal skills: Excellent communication skills are a primary requirement for anyone seeking a chief compliance officer job. A CCO interacts with employees at every level, from executives and management to department heads and new employees. You must be able to explain company compliance policies and effectively communicate the importance of compliance training.
• Strong work ethic: Excellent work habits are also important qualifications for a CCO. Complex decision-making, multi-tasking, management, training, and forging connections with peers and senior management are daily components of a CCO’s job.
• Thorough understanding of laws and regulations: While a law degree is not required, a CCO must be well-versed in regulatory requirements and laws concerning their industry to ensure the company’s compliance program meets those requirements and laws.

Whether you plan to become a new chief compliance officer in health care, finance, or another field, here are some tips to help you on your career path:

1. 1. Gain experience as a manager. A CCO is a highly paid executive position that requires experience as a leader. Gain experience as a supervisor to demonstrate your ability to manage people effectively.
2. 2. Get an education. Candidates for a CCO job must hold a high school diploma (or GED) and a bachelor’s degree in a field that’s relevant to your prospective company, such as business administration, health care, or financial services. Some companies may also require a master’s degree in one of those fields.
3. 3. Network and establish connections. CCOs must work closely with state and federal regulators and their state bar association. A positive working relationship with these regulatory bodies and a record free of any ethical concerns are essential for a CCO candidate.

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