Organisations are currently facing increased scrutiny over their conduct risk culture.

In this blog we explore the nature of conduct risk, how businesses can achieve good outcomes, and the relationship between incentive structures, performance metrics, and their impact on shaping the conduct culture in financial institutions.

What is conduct risk?

Conduct risk refers to the potential harm that can arise from the behaviour of individuals within an organisation. It is crucial for companies, especially financial institutions, to measure and assess their conduct risk culture to ensure alignment with their values.

There are many methodologies and frameworks used to measure and evaluate conduct risk culture. The best culture change initiatives will not be one-off exercises, but long term programmes, because it takes time to change embedded assumption, norms and beliefs.

All culture 'journeys' require a consistent and focussed effort from the top of the organisation down - and should look at how to move beyond simply meeting regulations. It is essential that firms do not become complacent; they must regularly re-assess their culture, understand progress to date, take action on gaps and instil an effective and resilient culture.

Culture is lived by the people in the organisation, and things are always fluid; new employees come in bringing new ideas, or the business may have to make changes due to external factors. The most effective firms constantly keep in mind that the culture is evolving all the time – and they shift their strategy to cope with this.

What do the regulators say?

Recently there has been increased regulatory focus on the topic of culture. In 2022, the FCA's Emily Shepperd gave a speech entitled "From Zeroes to Heroes: How culture in financial services can change for everyone's benefit." The FCA has also boosted a cultural shift in financial services with the 2023 Consumer Duty regulations, and their recent consultation paper about Diversity and Inclusion.

The Australian Prudential Regulation Authority (APRA) published their 'Risk culture 10 Dimensions' framework, outlining these 10 key aspects which contribute to risk culture:

APRA's Risk Culture 10 Dimensions:

Risk Behaviours
1. Leadership
2. Decision-making and challenge
3. Communication and escalation
4. Risk capabilities
5. Alignment with purpose and values

Risk Architecture
6. Risk governance and controls
7. Risk appetite and strategy
8. Risk culture assessment and board oversight
9. Responsibility and accountability
10. Performance management and incentives

Measuring and assessing conduct risk culture

To effectively measure and assess conduct risk culture, organisations employ various methodologies and frameworks. The most commonly used framework is the "Three Lines of Defence" model. This model delineates the roles and responsibilities of different stakeholders within an organisation to ensure effective risk management.

The first line consists of the employees who directly interact with customers and clients.
The second line involves risk management and compliance functions.
The third line includes internal audit and independent review functions.

This model facilitates a comprehensive assessment of conduct risk culture by incorporating multiple perspectives.

Another methodology used to measure conduct risk culture is conducting cultural surveys and assessments. These surveys aim to gauge employees' perceptions and behaviours regarding conduct risk. By gathering data through anonymous surveys, businesses can identify potential gaps and areas for improvement. Assessments can also include interviews with key personnel to gain a deeper understanding of the organisation's culture and its impact on conduct risk.

Using appropriate conduct and culture management information will embed and strengthen the methodology used.

Incentives and culture: aligning behaviour with values

The relationship between incentive structures, performance metrics, and conduct culture is important in shaping the behaviour of employees within financial institutions. Incentives play a significant role in motivating individuals to achieve desired outcomes - but they can also inadvertently encourage risky behaviour if not aligned with an organisation's values.

To align behaviour with values, leadership teams should design their incentive structures carefully. This involves setting performance metrics that promote conduct risk awareness and adherence to ethical standards. Examples of these metrics could be:

• Customer satisfaction ratings
• Compliance with regulatory requirements
• Internal reviews from fellow employees
• Adherence to ethical codes of conduct

Linking incentives to these metrics should encourage employees to prioritise responsible behaviour and align their actions with the values of the business.

It's also important to communicate effectively with employees and implement training programmes to help create a strong conduct risk culture. Employees need to understand the importance of conduct risk and how it aligns with the organisation's overall mission and values. Regular training sessions using real life examples or external cases studies can help reinforce the desired behaviour and promote a culture of accountability.

What's the outcome of a strong conduct risk culture?

Measuring and assessing conduct risk culture is a priority for organisations, particularly financial institutions, if they want to mitigate potential harm and align employee's behaviour with their values. The gold standard is for employees to understand the expected behaviours, and to live the values through their work at all times, thereby safeguarding the business and its customers – as well as fostering trust and confidence among stakeholders.

Firms should use methodologies such as the "Three Lines of Defence" model and conducting cultural surveys to gain insights in to their conduct risk culture, as well as make changes in order to strengthen it. And it's also important to align incentives and performance evaluations with values so that the right behaviour is encouraged and rewarded in ways that promote responsible conduct.

Ultimately, a robust conduct risk culture contributes to the long-term success and sustainability of an organisation, the experience of its employees - and more importantly, the safety and satisfaction of its customers.

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This blog was written in collaboration with Martyn Carvey, Head of Ops Risk and Compliance SMF16 at National Australia Bank. 

Martyn has 20+ years of experience in risk management, regulation, policy-making and leading complex projects across sectors including Corporate Institutional Banking, Asset Financing, Private Banking and Asset Management. Key specialisms include embedding risk management, risk culture, risk reporting, regulatory strategy, ICAAP, stress testing, recovery planning, wind-down analysis and Brexit planning and has a strong background in delivering effective Governance, Risk, Compliance and AML/Financial Crime programmes within the Financial Services industry. Martyn currently is the Head of Operational risk and Compliance holding the SM16 function, as well as Head of Financial crime at National Australia Bank. He is a pragmatic and practical problem solver and leader who enjoys a complex challenge. Martyn has previously Chaired the Risk Network , which consists of 100+ CRO's across all finance sectors and has presented on risk assessment methodology and embedding risk frameworks into organisations. Martyn is a member of various trade associations and industry bodies.

It's Autumn 2023, and Artificial Intelligence is a high-priority topic on many business agendas across the world.

Regardless of industry or function, business leaders are trying to understand how to harness the power of AI – to use it to help improve their performance, and reduce inefficiencies.

But it's very difficult to embed AI into business process when it is still evolving so quickly; and it is crucial for leaders to ensure that there are controls in place, clarity around its use, and that it is not relied upon too heavily in functions where human interventions are still critical.

One of the most important functions, especially in Financial Services, is Compliance and Anti-Financial Crime. These teams are pivotal in ensuring that customers are kept safe, and that criminals are kept at bay. So, can AI help them do this – and is it failsafe?

AI and AML activities

We know that fraud is a billion-dollar problem across the world, and that anti-financial crime professionals often have huge amounts of data, transactions and trends to analyse, in order to detect threats and risks. This is probably one of the key areas in which AI can really impact efficiency. For example, AI systems can:

• Perform advanced transaction monitoring: AI-powered systems can analyse vast amounts of financial transaction data in real-time, identifying suspicious patterns and anomalies
• Carry out accurate customer risk assessments: AI-driven tools can assess customer risk profiles more accurately by analysing a broader range of data sources, including social media activity and online behaviour.
• Forecast: AI can forecast potential money laundering or fraud activities by analysing historical data and identifying trends

By using AI in this way, anti-financial crime professionals can reduce the amount of time spent on going through the data and finding trends; instead, they can spend more of their time on analysis, producing reports and making informed decisions about risks to the business.

AI and Compliance

Regulations are changing all the time, and one of the key responsibilities of a compliance officer is to make themselves aware of changes, adapt their firm's procedures accordingly, and provide evidence to regulators that they are complying with the rules. AI can assist them in doing this by:

• Sifting through vast amounts of 'unstructured' data such as news articles and regulatory documents to draw out key areas of change or update to laws
• Composing summaries and simplified reports which Compliance officers can use to inform their recommendations to the rest of the business

Using AI in this way will reduce a Compliance officer's time spent on reading vast documents and draw out key points quickly, enabling them to use this information to analyse the changes they need to make internally and spend more time on putting new and effective controls or policies in place.

But does AI ever get it wrong?

Accuracy in AML and compliance tasks is absolutely paramount, so it's very important for Compliance and Anti-Financial Crime leaders to understand that AI is not perfect – and does get things wrong sometimes.

AI systems rely on accuracy of data - they use this data to learn and train themselves. If the input data is incomplete, outdated, or inaccurate, it can lead to erroneous results. Coupled with this is the fact that AI systems can very quickly become out of date, especially when it comes to regulatory information where, as Compliance Professionals know, changes in regulation can happen on a regular basis.

AI systems, although they will surely improve quickly, can be inaccurate in their findings; and when it comes to AML, this can result in false positives or negatives, which could potentially add to the workload of an Anti-Financial Crime professional rather than take it away. AI systems can also 'inherit' bias, depending on the type of information they are learning from – so human oversight is crucial to ensure customers are treated fairly.

And what can't AI do?

AI is what it says on the tin – Artificial Intelligence. The speed and breadth of intelligence within AI systems will likely far outweigh that of a human; but humans possess some critical skills that AI systems don't have, at least not yet. When it comes to Compliance and Anti-Financial Crime, human professionals use the following vital skills to ensure success:

• Critical thinking and judgement; the ability to analyse information in the context of lots of other considerations, and form judgements without any bias
• Decision making; the ability to make well-informed decisions within the context of their own role and business
• Relationships; the ability to network, speak with peers, attend events and learn from these interactions
• Ethicality and Trust; humans are able to build trusting rapport with customers, which machines are much less able to do, as well as ensuring ethicality and fairness are always kept in mind

So, as a Compliance and Anti-Financial Crime professional, you may well find that you are starting to use AI systems more and more in your work – but do so with assurance that you are using it in the right way and for the right things. Compliance and Anti-Financial Crime professionals should embrace AI as it continues to develop, and acknowledge that it will become ingrained in your professional lives in a positive way; leaving you to spend more time doing what you do best.

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This blog was written in collaboration with Kash Baig, a senior compliance professional whom Twenty84 has had the pleasure of working with for many years. Kash describes himself as a sci-fi nerd who loves Star Wars/Trek and all things superheros; an avid reader who dreams of peace and harmony in a dark world – who with the time left does some compliance work! Kash began his career working in criminal law, before moving into compliance around 2010. He has since evolved in to a self-confessed compliance nerd who loves...life!

Currently, financial crime prevention is one of the fastest-growing areas of risk management.

This means that the demand for financial crime professionals is on the rise. Simultaneously, more and more companies are on the lookout for compliance professionals in order to avoid the detrimental consequences of non-compliance. Despite this increasing need for these kinds of professionals, however, the competition for roles in the sector is very high - so how can you stand out in your financial crime or compliance interview in order to achieve your ideal role? Read on to find out...

Before your interview:

1. Research the company

Doubtlessly, you will have already conducted some research around the company that’s interviewing you in order to complete your initial application. However, now is the time to really dig into what it is the company does, how they operate, and so on. As you’re very likely to be asked questions such as “why do you want to work for us?” and “what do you know about our organisation?”, this will enable you to answer fluidly and demonstrate your interest in the role.

2. Research latest news and updates in the industry

When it comes to financial crime and compliance, news and updates are in abundance. There’s always something going on in the sector that will somehow have had an impact, whether big or small, on the company that is interviewing you. It is likely that you will be asked about these in your interview, and by being able to answer these questions knowledgeably, you’ll immediately demonstrate your professionalism and interest in the industry, which will appeal to your prospective employers.

3. Prepare and rehearse answers to likely interview questions

We’ve already mentioned a few of the kinds of questions you might be asked in your financial crime or compliance interview above, but these only scratch the surface. Some other questions that you should prepare for for financial crime and compliance might include:

• Tell us about your experience as a Compliance Officer/Head of Compliance/Due Diligence and Monitoring AML Manager/AML Analyst
• Why did you choose to make a career as a Compliance Officer/Head of Compliance/Due Diligence and Monitoring AML Manager/AML Analyst?
• Explain how you would handle a compliance policy violation
• What was the most difficult AML/financial crime/compliance breach case that you have handled?
• What do you believe is essential for an effective compliance programme?
• How would you handle a request by a senior executive intended to violate internal compliance policies?
• Tell us what you know about our compliance measures/financial crime procedures at this company
• What training and/or certifications do you have, and what more would you like to add to your repertoire?

By preparing answers to these questions, you will once again be able to demonstrate your knowledge in, and enthusiasm for, the sector.

You will also likely be asked some role-specific questions, so here are some of the most common:

KYC

• Can you explain the Know Your Customer (KYC) regulatory requirements and how they apply to the financial services sector in the UK?
• What types of customer due diligence (CDD) do you conduct during the onboarding process, and how do you verify the identity of new customers?
• How do you assess and determine the risk level of individual customers and entities for AML purposes?
• What sources do you use for customer screening, and how do you handle potential matches to sanctions, PEPs, and adverse media lists?
• How do you handle Enhanced Due Diligence (EDD) for high-risk customers, and what additional steps do you take in these cases?
• Can you describe the red flags you look for during the KYC review process, and how do you investigate and resolve potential suspicious activities?
• What steps do you take to monitor and review existing customer profiles to ensure ongoing compliance with AML regulations?
• How do you document and maintain accurate records of KYC processes and customer interactions?
• Can you explain the role of transaction monitoring in AML compliance, and how do you identify and investigate potentially suspicious transactions?
• Have you been involved in handling AML-related regulatory audits or inquiries, and how do you prepare for such examinations?
• How do you stay up-to-date with changes in AML regulations and industry best practices
• Can you provide examples of challenging KYC cases you've encountered and how you resolved them?

Transaction Monitoring

• How do you set up transaction monitoring rules and parameters to detect potentially suspicious activities effectively?
• Can you explain the different types of alerts generated by the transaction monitoring system and how you prioritize and investigate them?
• How do you differentiate between false positives and genuine alerts, and what steps do you take to minimize false positives?
• Have you encountered any complex scenarios in transaction monitoring, and how did you handle them?
• Can you describe a situation where you identified and investigated a significant transaction anomaly that led to the detection of potential money laundering or fraud?
• How do you ensure that transaction monitoring processes align with the latest regulatory requirements and industry best practices?
• What measures do you take to enhance the effectiveness of transaction monitoring, considering the evolving nature of financial crime?
• How do you collaborate with other teams, such as compliance, investigations, and analytics, to strengthen transaction monitoring capabilities?
• Have you been involved in implementing or upgrading transaction monitoring systems, and what challenges did you face during the process?
• Can you share examples of how you have contributed to improving the efficiency or accuracy of transaction monitoring procedures in your previous roles?

Be aware that it is also very likely you will be asked personal questions too, such as:

• Tell us about yourself (here, you’ll be expected to talk through your CV, how your career has progressed, and why you have applied for the role)
• How do you spend your free time? (it’s important to highlight any hobbies and interests that also include any skills that can be used within the role you’re interviewing for when asked this question)
• What are your greatest strengths and weaknesses? (for your strengths, explain how you will use them within the role, and with weaknesses, suggest how you are working to improve upon these and how this will be beneficial in the role)
• Why are you leaving your current role? (ensure you keep your response to this positive - for example, state that you are looking for a better culture fit, or you want to expand your career prospects, rather than being negative about your current placement)

4. Prepare some questions to ask in the interview

Remember, this is your chance to find out about the company too, so make sure you prepare some of your own questions. This will also emphasise your interest in the role.

Some questions you should consider asking include:

• What are the key areas of compliance I’ll be focusing on?
• How is compliance perceived across the company and team?
• What are the key risks and vulnerabilities the business is currently facing with compliance?

If your questions have been answered throughout the interview process already without you asking them previously, don’t ask them - it will look as though you haven’t been paying attention!

5. Make travel plans

Ensure you allow enough time (plus a bit extra) to get to your interview location, and plan for any potential hold-ups, such as traffic, roadworks or unreliable public transport.

6. Prepare anything you have been asked to bring - and make duplicate copies. 

Check through this the night before and ensure that it is all presented neatly.

7. Dress appropriately

Do some research into the company’s culture and dress accordingly; it’s not ideal to turn up over/under-dressed! Banks tend to expect you to be formally dressed, whereas FinTechs mostly have a more casual dress code.

During the interview:

1. Be positive and attentive

Things as simple as smiling, a good handshake, appropriate humour, good eye contact and open body language from the offset will be an advantage in your financial crime or compliance interview. As a professional in this field, you will be working in various departments with a variety of people, so it’s vital that you show your willingness to build positive relationships.

2. Be clear and concise

How you answer questions will also be an indication of how you will communicate as part of the team and between departments. Being clear and concise is essential in financial crime and compliance roles where subject matters can be complex, so be sure to reflect this in the way you answer interview questions

3. Use the Situation, Task, Action, Result (‘STAR’) approach

Financial crime and compliance roles are often full of challenges, so the STAR approach to answering questions will, similarly to being clear and concise, put you in good stead.

4. Keep your career plan in mind

Retention is a large concern in the compliance sector, so being able to demonstrate your 5-10 year career plan will be music to an employer’s ears.

After the interview:

While you are awaiting feedback from your interview, ensure you make other applications. Not only will this give you a safety net in case your current application is unsuccessful, but, should you be invited for further interviews, you will be able to demonstrate that you are potentially in demand from other companies, which will make you a more desirable candidate.

If your interview is unsuccessful, do not be disheartened; instead, thank the company for their time and ask if there is anything you can improve upon for next time.

What next?

Our recruitment experts here at Twenty84 have a plethora of experience placing financial crime and compliance professionals in their ideal role. Unlike other recruitment agencies, we’ll also take the time to get to know you as both a professional and individual, so that we can fully support you in preparation for your financial crime or compliance interview. If this support is of interest to you, register with us today. We also have a variety of financial crime and compliance roles currently available on the jobs page of our website, so be sure to take a look around there.

Compliance is a vital component in the success of every business.

Without it, businesses are at risk of being heavily fined, or in the worst-case scenario, shut down completely. So it often comes as a surprise to many that compliance job roles (such as compliance consultant, compliance officer, compliance manager etc.) have not been around for very long. In fact, it was only through the passing of the Sarbanes-Oxley Act in 2002 that the need for compliance professionals in business really took hold.

Despite this short time period, there have been many compliance developments and changes throughout multiple industries - and even in 2020, new developments are continually evolving. So, as a compliance professional, how can you ensure that you are carrying your role out effectively? To be an effective compliance professional, you essentially need to  advise the business that you work for on meeting their legal and regulatory obligations, and ensure that the business adheres to them. 

Of course, this is much easier said than done. The role of a compliance professional is much more in depth and complex than many people realise - which is why we have shared our secrets on how to be a successful compliance professional below:

How to be an effective compliance professional in 2020

1) Continually improve your compliance skills 

There are several essential skills and traits you need to have to be a successful compliance professional, so it’s important to ensure that you are always seeking self-improvement on the following:

Integrity

This is perhaps the most vital of a compliance professionals’ traits. Having a sound moral principle is essential to ensure that you not only act in the best interests of the business you work for as well as those affected by the business’ output, but that the business also trusts your judgement and takes on your advice.

Problem-solving/critical thinking

Being a compliance professional means frequently coming across complex and often unclear policies, laws, and standards, so it is essential that you can look at these analytically and critically in order to understand them. Additionally, if the business you work for wishes to carry out particular actions, you may need to think about how they can do so whilst remaining compliant, so ensuring your problem solving skills are up to scratch will help you to be a more effective compliance professional.

Communication 

Communication, whether written or verbal, is essential in any compliance role. As mentioned above, new policies, laws and standards can be unclear, so you should be able to explain these in a concise way. It’s also essential that you take the time to listen to what your colleagues have to say, so that you can respond to them accurately and professionally. Unfortunately, there are also times when a business may wish to carry out certain actions that do not adhere to compliance regulations; if they are resolute in this, you need to have strong conflict resolution skills in order to explain and defend your standpoint for the sake of the company’s welfare.

Empathy 

If a business does wish to carry out actions that do not adhere to regulations, as well as having strong conflict resolution skills, it’s important that you are also able to show empathy by emphasising that you understand their position and ambitions. Business managers are more likely to take on board your suggestions and advice around compliance if you empathise with their situation, too. 

Transparency

Having transparency – i.e. being open and honest in all your interactions with the business – means you will build trust. And the more you are trusted, the more effective you will be able to be within your compliance role.

2) Always be one (or more) steps ahead

One of the key aspects of compliance is that it is always evolving. So, to be effective as a compliance consultant, you will need to be as proactive and reactive as possible to stay ahead of the game. Take note of any and all updates in specifications, policies or laws in the business sector you advise for and take action on these as soon as physically possible. Keeping an eye on the daily news or articles that are posted online is a great way to do this. The sooner you are aware of a change, the sooner and more effectively you can prepare for it - and the simpler it will be for your business to make any necessary updates and changes. 

3) Don’t forget to look at the bigger picture

Leading on from the above, being an effective compliance professional means being able to focus on the little details of the latest regulations, as these can be what make the biggest differences for your business. But it’s also important to look at the bigger picture: how do new regulations, laws, policies and so on affect not only the business, but who they work for/alongside? What are the implications of this in the future? Again, the more insightful you can be, the better prepared you can make the business, and therefore, the more successful.

4) Find and befriend compliance believers 

As a compliance professional, there will be many times where you may face conflicts within your career. This can be a lonely position to be in, however, by finding others within the business who are believers in compliance and showing them gratitude and recognition for this, you will encourage them to stand by you in difficult situations, meaning that your compliance procedures will be easier to carry out. Even just making your presence more known throughout the business – for example, work socials, getting involved in staffroom conversations and so on – can make this easier!

5) Get involved in training opportunities and events 

Being qualified as a compliance professional doesn’t mean the end of your training and development. In fact, it is only the beginning! There are a multitude of courses available both in person and online for you to enhance your practice and hone new skills ready to bring back to the office. What’s more, there are a wide variety of different events across the county each year that you can attend, such as the Risk and Compliance Annual Conference, The Financial Services Compliance & Risk Conference, Compliance Awareness and more. By attending as many of these events as possible, you’ll have the opportunity to stay up to date with the latest developments in the compliance sector and network with other compliance professionals, too. 

6) Learn from other compliance professionals

One of the best ways to keep learning and developing in the ever-changing landscape of compliance - and therefore become a more effective compliance professional - is by forging connections with other practising compliance professionals. Try and find yourself an experienced mentor in the sector, or network with more senior and experienced compliance professionals whose knowledge you can draw on and learn from for your own work. 

Conclusion

This advice is by no means exhaustive, but it should certainly provide you with a strong foundation to build on in order to become the most effective compliance professional you can be. If you’re a compliance professional looking to expand your experience further, why not take a look at the roles we have available here? Alternatively, you can find out more about how our team can assist you here.

 Find out how to boost your career in compliance

Whether you’re looking to move into a compliance role or are a compliance professional wanting to take the next step in your career, continuing regulatory reform means that the demand for people conversant with the regulations and practicalities of finance is high. As a result, despite challenges in the market due to Brexit and the upcoming IR35 regulation, there is still plenty of opportunity to build a successful compliance career, whether you are looking for financial crime, AML or compliance oversight roles. But when it comes to developing your career in compliance, what’s the best route? Read on to find out how to advance your compliance officer career path…

Why compliance?

For many years, compliance was seen as a box-ticking exercise. Fast-track to today, however, and that’s all changing. Working in compliance can provide an intellectually stimulating, financially rewarding and exciting career at the crossroads of business, law and politics. It’s no longer just about box-ticking - instead, compliance professionals today are often right at the centre of an organisation. They are highly sought after - and as a result, very well-numerated, with management-level salaries exceeding £100,000. And since there’s also a shortage of compliance professionals, especially in niche areas, there’s the opportunity for faster job progression, too. In fact, 79% of compliance departments struggle to recruit the right talent - which means there is scope for rapid progression. But how can you advance your career in compliance?

5 ways to advance your career in compliance

1. Get the right qualifications

Although it’s not necessary to have a particular qualification to work in compliance, there are some qualifications that can help you get ahead on your compliance officer career path. Onwards from your BSc, BA or undergraduate degree, there are a series of advanced qualifications for those working in financial services compliance. As well as ACAMS qualifications and an MA or MSc in finance, other qualifications include the Diploma of Investment Compliance from the Chartered Institute for Securities and Investment (CISI) which provides a deeper knowledge of the financial service regulatory landscape; not only in the UK, but globally. 

A shorter option is the six-month Advanced Certificate of Compliance run by the International Compliance Association (ICA), which can be completed mostly remotely outside of work hours. This is good for getting to grips with the basics of compliance, particularly for individuals hoping to work in AML and financial crime. Further compliance qualifications are also available at the London Business School, where the highly-coveted MBA will be particularly useful in angling your leadership insights when it comes to the latter stage of your career.

If you do decide to further your qualifications, remember: these exams are not designed to be easy, and you will have to factor in significant study time into your already busy schedule. It’s worth it though - after all, while hands-on experience will always be important, gaining qualifications creates a foundation of valuable knowledge and can instil confidence in your future employers. Professional qualifications are a benchmark of competence and excellence, setting you apart from other candidates and helping you to get ahead in your career and maximise your compliance officer career path. 

2. The importance of training and development

As well as qualifications, ongoing training and development is also essential when it comes to developing your career in compliance. Understanding the inner workings of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are integral to progressing your career in compliance. Compliance jobs are reliant upon the standards set out by these regulatory authorities, and therefore you need to be sure you know the latest regulations and any changes when they take place - and without an understanding of the regulatory and legal environment surrounding the industry, it may be harder to land the job you want. If you already know which specific sectors or industries you’d like to work in, you could look on the websites of their professional bodies for courses and study opportunities.

3. Gain experience and learn on-the-job  

To climb up the career ladder and ultimately become a CCO, it helps to gain experience across the business. This will then give weight to your understanding of the need for compliance in any one area, whilst your recommendations around how to implement compliance policies will be more valuable because you might be able to have an efficiency angle or a profitability angle. Bringing that front office experience into a back-office function is hugely beneficial, because one can’t be effective without the other. Working across various roles also allows you to hone your skill set: from commercial thinking and financial understanding to the knowledge of business systems and processes, all of these skills are integral for the progression of your career in compliance.

4. Make sure you network

To succeed in compliance, you need to build strong relationships with the rest of the business. It’s not just about knowledge and rules and regulations - in order to rise up the ranks, you need to show that you are proactive and that you have great people skills and interpersonal skills. The relationships you foster are crucial to the success of your compliance career, and effective networking can help you to master your ability to be proactive, market yourself and demonstrate how you can add value to the business. As a compliance officer, You’ll need to be able to communicate effectively with people across entire businesses, from senior executives to peers and more junior members of staff. So if you want to be promoted and move forward, you need to work on your holistic skill base and develop your people skills, too.

5. Be strategic about your career

Once you’ve had exposure to various areas of business and have some key basic skills under your belt, you’ll need to decide which direction you want your compliance career to go in. Are there specific areas you enjoy, such as general compliance, financial crime, or compliance advisory? Or perhaps you have an interest in specific sectors such as fintech, banking or investment management? After figuring out which areas of compliance interest you, you need to strategically apply for roles that will give you the skills and experience you need to progress your career. Sometimes this could mean taking a sideways step or taking a lower salary in order to get the necessary exposure. 

For example, if you want to move into Fintech but have only worked in large banks, you’ll probably need to take a pay cut and develop your experience in fintech before working your way up the ranks. More often than not, our clients are looking for a specific skill set and experience that is closely aligned with their business and the role they are hiring for. As a result, loosely transferable skills are not usually enough especially in a tough market. So when it comes to planning your next move, think strategically - and always have the bigger picture in mind!  

 At Twenty84, we are experts in compliance recruitment

Our team are on hand to provide expert advice no matter where you are in your compliance journey. So if you’re ready to take the next step in your career, contact us today to find out more about the positions we are currently working on and see how we can help you get to where you want to be.