The belief that a more globalised economy supports lasting geopolitical stability has been “severely shaken”, an External Member of the Bank of England’s Financial Policy Committee warned in a speech earlier this year.

Addressing an audience at Canary Wharf’s Fitch Ratings, Carolyn Wilkins went on to describe how a UK central bank survey found that geopolitical volatility and cyber-attacks were the most common risks facing financial institutions.

In response to this reality, Ms Wilkins said businesses should focus on preparedness – from “war-gaming system-wide cyber events” to ensuring recovery and resolution plans are robust in a deteriorating geopolitical landscape, so as not to repeat the errors that led to the Global Financial Crisis.

One corporate function particularly affected by all this turbulence is the compliance team. In fact so much so that many firms are in the process of re-evaluating the role of governance, risk and compliance (GRC).

A key question being asked is: does this business function exist merely to ensure compliance, or should it perform a more strategic service in the context of unpredictable global tensions, the rise of artificial intelligence and fragmenting regulations?

The answers lie firmly in a report by the International Compliance Association (ICA): Navigating the Future: The Evolving Role of the Compliance Professional. This insights-rich document argues that compliance leaders are no longer confined to a reactive, box-ticking function but are increasingly being called into the C-suite to provide strategic counsel.

But what skills and tools do teams need to step into this pivotal new position?

Traversing the new landscape of risk

With the world becoming a more complex place to do business, it’s perhaps unsurprising that professionals surveyed by the ICA said ‘engagement in strategic planning’ was the most important measure for futureproofing the GRC function. Alongside this, relationship management was deemed the most important skill for compliance professionals to possess.

Practitioners must also now be experts in financial crime, data privacy, ethical AI implementation and digital security – as well as being expected to anticipate what’s coming over the hill and provide proactive advice rather than reactive fixes.

This demands a change in approach. If compliance professionals are to guide their organisations effectively, they require two fundamental things.

One: access to timely data and insights

To be a strategic advisor, GRC leaders must learn an important skill: storytelling. Those who can craft a compelling narrative for decision-makers stand a better chance of not only being heard, but also understood. However, this is only possible if professionals have access to accurate, real-time intelligence on regulatory changes, geopolitical events and specific risk indicators.

This ability to identify and assess future risks and regulations is at the core of compliance’s new business-critical role: translating complex data into a clear story for the business.

Two: freedom from manual tasks

Compliance teams are often buried in time-consuming, repetitive work like manual monitoring, due diligence checks and report compilation. It’s an administrative burden that not only consumes precious time which could be spent on high-value strategic activities, but also significantly eats into budgets.

The ICA’s research shows that the industry recognises this challenge, with 47 percent of firms planning to increase their investment in tools to automate processes. This will free up skilled professionals to focus on analysis, strategy and advising leadership – the very activities that define their new role.

Empowering the strategic compliance officer

But in order to perform this new strategic function, compliance teams need technology that transforms their capabilities from the ground up.

My Compliance Centre is designed to meet the demands of the modern era. Our platform empowers compliance teams to transition from a manual, reactive posture to an automated, proactive one. Here are two ways we do this:

• Powering strategic storytelling: We provide the tools for effective horizon scanning and risk management, delivering the timely and accurate data needed to provide forward-looking advice to leadership.
• Creating time for strategy: Our platform automates a wide range of time-consuming tasks, from due diligence and client onboarding to staff training and policy management.

By freeing your team from administrative burdens and equipping them with powerful insights, My Compliance Centre allows compliance teams to rise to the myriad challenges thrown at businesses by a volatile world. And in doing so, they can become expert strategists capable of playing a key role in protecting the business today and long into the future.

Sources:

Geopolitics and financial stability: a plan beats no plan − speech by Carolyn Wilkins

Navigating the Future: The Evolving Role of the Compliance Professional