By Rob Starr, Big4.com, Content Manager
Experts are predicting many components of the present compliance function will mimic elements of finance and become embedded into organizations by 2025. The results will be better risk management as opposed to more framework management, according to the findings of both PwC’s State of Compliance 2014 survey which sees some organizations already taking this route and a recent paper, The surprising truth about the C-suite star of 2025, also from PwC, which further explores this topic.
Sally Bernstein, a principal at PwC, and Andrea Falcione, a managing director at PwC, recently took some time to navigate this research with us. Bernstein started by saying that
when they looked at the modern complexities of regulation and the expanding nature of business into multiple geographies in today’s business world, the conclusion was the CCO was the logical choice to wrangle the future landscape.
“CCOs understand the complexities across all these geographies,” she says. “They help organizations think about where they’re going and where they’re growing with new products, services and customers.”
The ability of the CCO to understand and work with these issues was one of the strongest reasons the PwC paper forwards the notion of this new position for them in the C-suite of the future.
Falcione concurs and adds to the idea saying the transformation for this executive position will also include an evolving relevancy, noting that the CCO of the future will be more involved in strategic risks and hands-on with the technology and metrics needed to head these problems off at the pass.
“Compliance will become more involved in helping the organization become more resilient,” she says. “They’ll be more involved in enabling business success up front.”
This vision has origins in the specific historical challenges these professionals faced as evidenced in PwC’s State of Compliance 2014 survey and how they eventually were able to ready themselves for this expanding career path. Bernstein explains:
“As we said in the survey, CCOs have reached a tipping point. They’ve been able to pick their heads up, look around and say, ‘We can start to add more value here. We can be better partners to the business and be more of a strategic enabler.’ ”
Falcione adds some further formation on the skills required saying CCOs of the future will have very different backgrounds from the ones they have presently.
“Not all, but many, of them have their roots in the law and with where we see this going, we envision more business experience, technical acumen and the like,” she says.