Compliance can become a strategic advantage if it can be turned into a culture within an organization.
Even though the appearance of compliance
is an easy way to provide short-term gains,
establishing a compliance culture drives
sustainable benefits that offer stronger
There are ample determinants
Understanding the regulator’s expectations
of a good compliance culture,
but four main components can
be considered the foundation for
establishing further applications
par excellence: understanding the
regulator’s expectations, building the
three C’s, providing a personalized
compliance experience, and effective risk
assessment. As a complementary practice,
looking for benchmarking opportunities can
be a checkpoint for improving culture. Thus,
recognizing a good compliance culture can be
considered the recommended fifth component.
A good culture of compliance is able to
see what is behind recent regulations,
because designated employees follow the
life cycle of regulations through interactive
communication with regulators. Updating
information by continuously screening
regulation development provides up-to-date
knowledge and a network in the legal sector.
As long as the intention and reasoning of a
regulation is known, the evaluation process
leads to an effective application, thanks to an
understanding of the expectations.
Building the three C’s
Compliance is built on three essential and
A culture of compliance must be built
through an interactive process, not added
on via top-down rules. This is possible
through clearly communicated policies
and procedures that can be understood
by everyone from regulators to employees
to customers. Communication is the main
vehicle to demonstrate compliance, because
it ensures the organization pays attention to
requirements and provides assurance to its
stakeholders, including business partners,
customers, and regulators.
How to build a culture
» Regulator expectations should be the foundation of effective applications.
» The three C’s—Communication, Confirmation, and Correction—provide a company culture with strong control points.
» A personalized compliance experience creates a self‑correction mechanism that makes employees part of the team,
» Compliance exists to close gaps between practice and best practice, so having an effective risk assessment is a
» Well‑founded compliance benchmarking is the key to continuous development.
by Cansu Eray
Cansu Eray ( firstname.lastname@example.org) is a Compliance Officer certified by ALCO (Association of
Compliance Officers in Luxembourg) from Dublin, Ireland. http://bit.ly/2GPyS11