In this blog you get to discover the world of compliance consulting in our latest blog. Uncover the role, challenges, and future of this essential profession.
As cyber threats and attacks become more sophisticated and prevalent, government regulations constantly change to adapt and respond. The same holds true in the world of business.
In fact, according to a report by Forbes, compliance is the top priority for business today, and rightly so. Certain violations can have significant real-life implications, and the fines associated with them are exorbitant.
So, how do you conduct business and ensure it doesn’t disturb the complex web of rules and regulations? The answer is hiring compliance consultants.
Who are compliance consultants? What do they do? How do you become one? This blog will tell you everything you need to know.
Table of Contents:
- What is a Compliance Consultant?
- What Does the Role of a Compliance Consultant Entail?
- The Challenges of a Compliance Consultant Role
- The Upsides and Future of Compliance Consulting
- Summing Up
What is a Compliance Consultant?
A compliance consultant is a specialist well-versed in all the relevant rules, regulations, and laws specific to an industry. Their main objective is to help businesses identify practices and policies that may lead to compliance violations and suggest modifications to help mitigate potential risks.
Compliance experts either work as individual contractors or as a part of a compliance consultant firm.
What Does the Role of a Compliance Consultant Entail?
Compliance consultants play a multifaceted role that varies based on their specialized industry. Generally speaking, a compliance expert focuses on the following:
1. Analyzing Compliance Requirements
Once a compliance consultant is hired, their first order of business is to understand the framework that applies to the specific industry the business deals with. The primary goal is to evaluate and mitigate risks related to compliance violations.
They also design and propose solutions to help the business achieve and maintain compliance with the relevant rules and regulations.
2. Performing Compliance Assessments and Audits
Once a compliance expert has a handle on the various regulation frameworks that govern the specific industry, they perform a thorough compliance assessment and a series of audits to evaluate the current compliance status of the business in question.
This assessment is done via interviews with the management and staff. It also involves pouring over documents, business records, and reports showing business activities and performance. Once they have conducted a thorough review, their next task is to present findings and recommendations to the management and staff of the business.
3. Rework Existing Policies and Procedures to Adhere to Regulations
A compliance expert reworks the business policies and procedures to comply with the most recent regulatory framework and may also provide guidelines to all relevant stakeholders on working toward the end goal of total compliance.
4. Provide Compliance Training
Another key aspect of a compliance expert’s role involves training employees and the management on all compliance-related matters. These involve any updates to the policy and procedures due to the compliance assessment exercise and answering any general queries anyone may have regarding the topic.
5. Continual Monitoring of Regulatory Frameworks
A compliance assessment and the subsequent changes are not a one-time exercise. Compliance experts must keep a close watch for any changes to rules and regulations.
Suppose there have been any modifications to the regulatory framework. In that case, consultants have to conduct in-depth research on if and how the most recent changes to regulations will impact the business and why they must be done to remain compliant.
In essence, the entire process above repeats itself.
The Challenges of a Compliance Consultant Role
Being a compliance consultant is, beyond a doubt, a rewarding career. That said, it’s also not without its challenges. The following are some of the most common challenges you may have to live with and overcome as a compliance expert:
- The job demands constant alertness: As mentioned in the preview sections, rules and regulations change constantly. A compliance consultant must always be alert and aware of the regulatory landscape.
- Challenges in getting stakeholders on board: While compliance is important, there are instances where stakeholders see compliance consultancy as more of a hindrance, an obstacle, or an additional expense when compared to the more pressing business matters they have on their plate.
- It is a stressful role: The life of a compliance consultant can be stressful and may require working extra hours. Workloads tend to be enormous, and the work can get monotonous over time.
However, the benefits of being a compliance expert outweigh the above drawbacks.
The Upsides and Future of Compliance Consulting
Undoubtedly, the role of a compliance consultant is not a walk in the park. That said, it is a rewarding career in terms of compensation.
As a compliance consultant, you can expect to earn the following based on your designation, which will only increase as you gain experience.
|Job Role||Average salaries in USD/PA
(As of Sept, 2023)
|Financial Compliance officer||70,461|
|Information technology security specialist||115,388|
|Director of Corporate Compliance||121,881|
Compliance consultants also enjoy a sense of fulfillment, knowing they are crucial in protecting businesses from legal and financial repercussions.
They are also the tip of the spear when it comes to fostering a culture of ethics and responsibility within an organization.
The role also is not limited to one specific industry, giving you freedom of choice when it comes to job locations as well as clients.
As far as the future of this role goes, as long as there are laws to follow, compliance experts will be in demand. This highlights the fact that this role brings a degree of stability, too.
In summary, a compliance consultant role puts you at the helm of ensuring that rules and regulations are followed. It is also a career path that is guaranteed to stay relevant for decades to come. This role, as with any other, does come with its own set of challenges. However, it also allows you to make a difference in an organization, which, in turn, may have a larger impact on society.
If you are looking for an experienced compliance consulting partner to help your business operations stay updated with current regulations, look no further than Hurix Digital. We have years of experience and work with compliance-heavy industries such as banking, healthcare, and pharmaceuticals.