In the first part of the Wanted: Compliance Officers series, we considered the role of compliance, its rapid growth in importance and also the responsibilities and risks that accompany its operation. It is certainly an exciting place to be right now and offers considerable leadership development opportunities and a wide-open space for potentially unlimited career growth. But is it for you?
This second article covers why you might consider becoming a compliance officer, the characteristics, skills and experience you will need to start your journey, and also how to go about building a career in this rapidly evolving arena.
Building a secure future
It is now certainly true to say that, with the right training, skills and aptitudes, a career in compliance can take you from entry level all the way to the board room. Because compliance is growing at such a rate, and becoming part of a whole range of industries, there are considerable prospects for those interested in building at least the opening years of a career in financial services, regulated industries, property, technology and IT, and even charities, to mention just a few. Furthermore, regulation is also very unlikely to suddenly disappear, so job security is certainly another strong factor in the long term. It is also worth pointing out that there is currently a significant shortage of good quality candidates in this field; demand continues to outstrip supply.
A people-oriented role
It has been said that roles in compliance are impersonal, lacking human contact. But this is far from the truth, as simply knowing the detail of the law and its operation would be insufficient to succeed as a compliance officer. In order to operate effectively, to both interpret the spirit of regulations and disseminate the legal requirements and implications of non-compliance through a business, the role requires a strong understanding of how people think and act. And in direct relationship to this ongoing interaction with people throughout the business, the compliance professional is also central to ensuring that operating in an ethical manner is at the core of a business. The compliance professional will carry a strong sense of ethical responsibility in their work with others in the business.
Broader and wider
If you are seeking higher leadership or management positions in the future, the role of compliance officer is a way of building wider knowledge, broader experience and networks beyond your own office. Regulatory requirements now extend across many of the operations of an organisation, and so compliance responsibilities will reach most, if not all, of its departments and functions. A compliance officer will certainly have the opportunity of working across the whole range of the business. In that way, compliance personnel can build a much broader view of a business, and potentially gain insights that will stand them in good stead for future career developments. Added to this, the skills gained in the role are highly transferable across jurisdictions, industries and to other settings. Compliance responsibilities are certainly a great steppingstone to higher responsibility.
Never a dull moment
It is perhaps also worth mentioning that any compliance role is unlikely to become boring. The constant development of the regulatory environment, sometimes at considerable pace, means that priorities will shift repeatedly. Certainly, the activities undertaken from week to week will have elements of repetition and pattern to them, but there will also be continual adaptation and changes in working modes to meet the fluid needs of a regulatory environment in flux, competitive pressures, industry variation and even internal restructuring. Life here is unlikely to get dull!
So, what about the money?
Experienced officers can command good salaries. Essentially, earnings will be based on one factor: the more the professional experience, the better the salary. As a basic start point, a compliance officer can probably expect to earn in excess of €50,000, a senior compliance officer above €70,000, and a chief compliance anywhere between €100,000 and €200,000.
Is it for you?
There are really three main skill areas that a compliance professional needs to master: an understanding of the law, data handling abilities, and some entrepreneurial skills. In a little more detail, these skills will likely include the following:
- Problem-solving, critical thinking and analytical skills: Decisions are sometimes made based on a detailed analysis and interpretation of data, but equally they may not always be black and white.
- Strong communication skills: The ability to communicate at a high level in the local language and also in English will be essential, given the increasingly international scope of most businesses.
- Management experience: Even in lower positions, employers are likely to require some background in management. Compliance officers are generally called upon to work with others in teams, and also to make management decisions that involve juggling several projects at any one time and work with multiple teams and disciplines.
- Legal and moral integrity: As already noted, ethical responsibility is of the utmost importance in this role.
- Knowledge and interest in the sector: As a compliance professional, you will be working in great detail within the company and the field. An interest in the industry and some expertise and knowledge are going to be vital.
Where to start
As a starting point, particularly if you are looking into this career at an early stage, a degree in law, business information or information science is a strong basis to build on. An undergraduate degree is usually required for entry; however, many employers are flexible as to the degree subject, and studying economics, business studies or accountancy would all be considered useful. The role is developing rapidly, and new and varied opportunities are opening across a range of sectors.
Promotion within the profession can be quite rapid, with junior officers being promoted to senior levels within less than five years and more senior management levels in six to eight years. There are also many opportunities to move horizontally to other areas such as auditing, cybersecurity or risk consultancy.
For those already in post, the importance of qualifications is growing. The Financial Conduct Authority (FCA), or its equivalent where you work, is becoming increasingly involved in regulation in this area. Achieving recognised qualifications in compliance is now almost an essential if you are targeting progression in the field, although unlike medicine or law, there are as yet generally no set criteria. For this reason, it may be valuable to focus on developing transferable skills.
Whether you are entering the profession at a graduate level, or moving into compliance from other professional roles, gaining qualifications to support your professional development is an essential. Many employers choose a course provided by an association or professional body such as AGRC. But others may look at courses provided at an accredited university. Much ongoing training will take place on the job, or by attending events, courses or conferences which will help to keep your knowledge up to date.
Take a close look at compliance. It is one of the strongest new professional areas with much to commend it as a future career location or as a building block towards future leadership and management positions. AGRC is a great starting point in your journey, or a support for your ongoing professional growth in this exciting field.