In our previous blog, we explored how compliance professionals need to evolve from reactive gatekeepers to strategic advisors. But to step into this new role effectively requires practitioners to learn new competencies and knowledge, such as change management, cultural awareness, critical thinking, sustainability and more.

A good starting point for gaining a deeper understanding of the expanding skillset in governance, risk and compliance (GRC) is the International Compliance Association (ICA)’s recent report Navigating the Future: The Evolving Role of the Compliance Professional.

My Compliance Centre’s team has been busy analysing the document and has concluded that three core areas are absolutely critical…

Regulating risk with relationships, narratives and analysis

Relationship management: This is now considered the most important competency for compliance professionals, according to the ICA’s research with nearly 29 percent of practitioners citing it as the key ability. Being able to build trust, communicate effectively and influence important stakeholders – especially where departments are grappling with the growing trend for deregulation – is essential for maintaining an organisation-wide culture of compliance.

Strategic storytelling: Effective advisors need to go beyond simply presenting data. In addition to translating complex risk indicators, regulatory changes and geopolitical events into a compelling narrative for the C-suite, they must be able to communicate the reasons for companies to continue doing business ethically in a deregulated world. The chances of success are significantly enhanced with this ability.

Proactive analysis: The modern compliance leader must anticipate future challenges – from financial crime and data privacy to the ethical implementation of artificial intelligence (AI) – and provide proactive advice.

Fascinatingly, just 2.5 percent of GRC professionals said ‘technical compliance expertise’ was a key skill, compared to 12.2 percent for ‘understanding the business’, 8.6 percent for ‘ethical judgement’, 7.9 percent for ‘adaptability’, and 6.1 percent for ‘big-picture thinking’.

Additionally, out of nine critical areas, 74.2 percent of professionals surveyed by the ICA ranked ‘compliance engagement in strategic planning’ in their top five actions for future-proofing GRC, while 56.4 percent said ‘upskilling governance, risk and compliance team members’ was a top-five priority. 

And let’s not forget that other feature of a constantly changing world: the steady and sustained rise in the cost of compliance since the 2008 financial crisis. Nearly one in 10 firms are spending more than 10 percent of their annual budgets on governance, risk and compliance (GRC) – driving the need for GRC teams to add value like never before.

Why technology has a vital role to play in the transition

As we established in our previous article, the main obstacle to developing new skills is the time lost to laborious manual processes. Repetitive tasks like due diligence checks, monitoring and report compilation add to workloads and eat up resources, creating an administrative burden that has a blocking effect on strategic thinking.

It’s perhaps no surprise then that 51.3 percent of professionals surveyed by the ICA said ‘advances in AI and technology’ would be the number one driver of change in compliance in the next five years.

Modern compliance platforms help teams create the time and mental bandwidth to focus on enhancing relationship management, developing strategic storytelling and performing proactive analysis. The intuitive nature of today’s platforms means that no specialist IT expertise is required to use them, allowing teams to become more efficient almost immediately.

The benefits of a modern approach

Adopting the right technology is not just about automating tasks; it’s about enabling compliance professionals to operate at a higher level. Modern platforms’ real value lies in the strategic benefits they provide. For example, with easy access to accurate, real-time data at their fingertips, compliance leaders can provide expert counsel to the C-suite and the board, allowing more informed management decisions.

Alongside this, in a world of fragmenting regulations and constant change, automated platforms allow organisations to adapt quickly, ensuring that new rules are implemented efficiently and effectively without disrupting business goals.

Finally, if your most talented people are freed from administrative work, it becomes possible to realise their true potential. They can instead focus on horizon scanning, building key relationships and embedding a robust and commercially advantageous compliance culture.

Are you ready to empower your compliance team to play a pivotal role in future-proofing your organisation? Talk to My Compliance Centre to learn about the tools that will help them do just that.

Navigating the Future: The Evolving Role of the Compliance Professional