Companies need to be more innovative when it gets down to compliance. Thus, compliance practitioners should ensure that ethics and compliance are central to the business operation in response to today’s evolving and fast-paced regulatory environment. Consequently, compliance programs should be innovative, behavior-based, yet consistent with organizational systems and policies.
However, one loophole with many compliance officers is they have legal professional backgrounds—the majority proceeds from the general counsel’s office and private practice. Frankly, innovation is not high on the charts for what most compliance officers are taught. Instead, they were familiarized with the Socratic method to read cases and learn how to argue points.
So, how can a Corporate Compliance Officer think about an innovation strategy for any risk management program?
Ben Locwin, a well-known innovator in a wide variety of fields, is here to throw in some light about Innovation in Compliance.
Key takeaways discussed in the episode:
- Decipher that connecting innovation and compliance is the pursuit of understanding the truth in the false positives and the false negatives.
- Come to know that there’s a marked difference between innovation and invention. Innovating the compliance infrastructure is always much more straightforward than creating something from scratch.
- See through the truth that we’re drowning in data but thirsting for information. Updating your beliefs with better data will always lead to better risk management outcomes.
- Change the way you’re looking at information so that you can position your company at the front edge boundary of what’s accurate and correct.
- Be reminded that the paradigm is changing; companies don’t stay static, people’s behavior doesn’t stay static. Thus, continuous monitoring leads to constant improvement.
