Navigating the future of compliance leadership

When discussing with colleagues and peers ‘what makes a great compliance leader’ in anticipation of my panel session at the recent ICA Future of FinCrime & Compliance Summit, there were some strong recurring themes. Primarily how, in today’s fast-paced business world, compliance leadership is about much more than just following rules. It’s about blending technical expertise with strong people skills, influencing, coaching, strategic thinking and adaptability, as well as fostering a strong compliance culture.  

Great compliance leaders turn regulatory requirements into strategic advantages and operational efficiencies, driving innovation and sustainable growth by embedding compliance into the very fabric of their organisations. They know how to challenge the status quo while working alongside the business to drive improvement and innovation. They don’t just enforce rules, they help shape the company’s strategy by aligning compliance initiatives with business goals.   

Leveraging the work done under the UK Financial Conduct Authority’s (FCA) Consumer Duty on better understanding how products reach customers is one recent example of this. More mature firms were looking beyond capturing distribution channels and target market statistics as merely something to include in reporting and MI, towards using that information to identify opportunities to improve those channels and broaden customer reach. This turns compliance into a strategic tool that empowers the business and supports real compliance value rather than just cost.  

Central to this success is a company’s culture. A strong compliance culture, with clear support from top leadership, makes all the difference. It’s not just about following rules, it’s about valuing compliance as part of the company’s DNA. Good compliance and corporate culture go hand in hand. When a company values integrity and transparency, it sets the stage for compliance practices to work well. Employees understand the importance of following rules and spotting potential problems early.  

That said, we must also acknowledge that there are many significant challenges in the current environment (as there always have been!) and on the horizon for compliance leaders to contend with. Cost-cutting pressures mean doing more with fewer resources, so efficiency is critical. There is also the ask on compliance to support emerging risks and areas previously not included in their remit, such as ESG and sustainability. Regulatory changes in this space, such as new reporting requirements or emissions standards, can have a significant impact on business operations and compliance teams as firms grapple with how to navigate new requirements.  

Embracing technology (can’t avoid AI!) is likely to be a serious enabler for effective compliance teams. By ensuring highly skilled resources are focussed on the more challenging issues, such as the growing regulatory burden for firms, and not bogged down by the more process-driven tasks, which can be automated, the real value-add activities can be prioritised without compromising the day-to-day compliance needs of the business.  

The future belongs to those organisations which see compliance not as a hurdle but as a strategic lever to propel their business forward and empower their compliance leaders to support this success. If any of the above resonates or you'd like support in practically driving your compliance culture forwards, I'd love to hear from you. jenny@avyse.co.uk