Many firms underestimate the importance of a designated compliance team supporting their business.
A common theme we have seen throughout the industry are firms designating a CCO, who already has a full time job (e.g. CFO/COO). The dual hatted nature of these responsibilities in many cases can lead to an increase in risk and the potential for error.
5 Unintended Outcomes From “Do It Yourself” Compliance
- Employees or Company Leaders without compliance training spend an inefficient amount of time to complete tasks in addition to their regular workload.
- This can cause delays in other projects within and outside compliance from being completed due to the inefficient time being spent to complete these tasks.
- Misallocation of internal resources.
- Key employees spending more time outside of their core competencies where they can be adding more value elsewhere.
- Compliance documents are incomplete, delayed, or inadequate (which will be appear evident to regulators).
- Reliance on unvetted information from the internet, social media, or word-of-mouth.
- Eventual outsourcing to a large, expensive, regulatory consultant firm that does not change their product to meet your needs but fits you into their process.
Vigilant’s Final Conclusion
It is extremely important for a growing firm to seek compliance assistance earlier than later.
At Vigilant, we provide customized end to end and co-sourced Compliance Solutions to alleviate the compliance burden your Firm may be facing.