CCO Insights: How to Articulate the True Value of Your Compliance Program

Chief compliance officers (CCOs) are familiar with the challenge of demonstrating the value of compliance programs in terms that resonate with other business leaders. As regulatory landscapes shift and organizational priorities evolve — particularly in a year that has seen see-saw changes under a new federal administration — compliance programs may experience heightened scrutiny from leaders who wonder how vital they really are.

Historically, compliance programs were often viewed as a necessary but burdensome aspect of business operations. But as regulatory requirements increased, more leaders came to recognize compliance as a strategic asset and support it accordingly. Today, effective compliance programs are essential for managing risk, protecting corporate reputation, bolstering resilience and driving business success.

But despite their benefits, support for compliance programs is not guaranteed. CCOs must be able to clearly articulate the true value of compliance to ensure their function continues to receive the support and resources it needs. 

The most successful compliance officers employ a combination of data-driven insights, strategic communication and business alignment to secure the support their programs need.

Communication & transparency

Effective communication is key to demonstrating the value of compliance programs, and CCOs must consider engaging with organizational stakeholders to be a core part of their responsibilities. By participating in strategic discussions and clearly articulating the benefits of compliance initiatives, CCOs can build support and secure the buy-in and resources needed to enhance their programs.

As part of their communication strategy, CCOs should share the outcomes of significant investigations in an anonymized way. Publicizing outcomes will demonstrate the company’s commitment to accountability, emphasize the message that misconduct is taken seriously and help build a culture of transparency and accountability. That transparency reinforces established ethical standards and helps cultivate trust among both internal and external stakeholders, empowering CCOs to step into a more active advisory role.

Christine Boucher, Delta’s chief compliance officer, emphasizes the importance of building trust and acting as an adviser to the business, which helps prevent issues before they arise.

“The most critical thing we have to establish as compliance officers is relationships of trust with the business,” she said. “By being advisers instead of watchdogs, we can help navigate challenges on the front end, preventing issues from arising at the 11th hour.”

Technology & data-driven insights

From data analytics to AI, technology enables compliance officers to monitor activities, identify potential risks and provide real-time insights to business leaders. Embracing technological advancements can enhance compliance programs’ effectiveness and demonstrate their value to the organization.

For example, data analytics can provide actionable insights into a compliance program and clear demonstrations of its impact. In other words, data can help link compliance activities to business outcomes, giving CCOs a compelling case for the strategic importance of their programs. 

But the benefits of data analytics extend far beyond a snapshot of the program’s current state. CCOs can also use compliance data to inform employee surveys that gauge sentiment and identify areas for improvement. The resulting feedback loop can empower CCOs to tailor future compliance strategies and align them with business goals, embedding compliance within the broader decision-making process.

Neil Falkingham, GSK’s chief compliance officer, underscores the importance of a proactive strategy in compliance:

“Our framework of predict, protect, and enable provides a roadmap for navigating regulatory changes,” he said. “By anticipating risks and embedding compliance into business operations, we ensure that compliance remains a strategic asset, capable of driving business success even in uncertain regulatory environments.”

The proof is in the price

A common misperception about compliance functions is that they are cost centers with little ability to influence the growth of the business. In fact, the opposite is true. Compliance is a growth driver. When compliance initiatives are aligned with business goals, CCOs can demonstrate a tangible impact on company growth, reputation and customer trust and build buy-in for future initiatives. Examining compliance’s effect on share price can provide a compelling illustration of this relationship in action.

Stakeholder trust is a critical factor for public and capital markets, and a strong compliance program can enhance trust in the company, positively influencing its share price. CCOs can leverage their data to provide other leaders with a tangible measurement of that positive influence. For example, they can compare outcomes of investigations at similar companies where a weak compliance program was a root cause of misconduct. By contrasting this data with their internal compliance program, CCOs can highlight the value of their efforts in safeguarding the company’s reputation and financial performance.

David Kass, Verizon’s chief compliance officer, emphasizes the role of business-driven demand in demonstrating value.

“It’s about having business-driven demand,” Kass said. “When business leaders feel that we are adding value and ask us to do things, that’s when we know we’re meeting demand.”

Practical strategies for engagement

CCOs must be proactive and innovative in demonstrating their program’s value. Building relationships based on value-add involves engaging with business leaders and providing actionable insights that align with business objectives. This approach fosters a culture of trust and collaboration, essential for effective compliance management. Leaders should keep the following core practices in mind as they work to showcase the value of their compliance programs:

• Engage early: Participate in business planning and decision-making processes to provide proactive guidance.
• Leverage technology: Use data analytics to monitor compliance and provide insights that inform business strategies.
• Foster a speak-up culture: Encourage transparency and accountability by sharing the outcomes of investigations and reinforcing ethical standards.
• Align with business goals: Ensure that compliance initiatives support and enhance business objectives, demonstrating their value as a strategic asset.

Conclusion

CCOs must act as zealous ambassadors on behalf of their compliance programs. By leveraging data-driven insights, fostering trust and aligning compliance with business goals, CCOs can secure the necessary support and resources to enhance their programs.

Companies that want to be trusted by the public and capital markets and gain the financial and operational benefits that trust can bring should proactively invest in their ethics and compliance programs. 

Public trust is a foundational element that supports a company’s long-term success and sustainability. It influences customer behavior, investor decisions, talent attraction and retention, regulatory interactions and overall market perception, making it a critical asset for any organization.