What is a Compliance Manager? (Overview, Roles, and Responsibilities)

A company’s board of directors must ensure their work processes are in line with industry, federal, and local rules and regulations to avoid fines, legal cases, and damage to their reputation. For that reason, many boards hire a compliance manager and designate a compliance committee.

Read on to learn more about the role of a compliance manager within an organization and how their work impacts every department.

What is a Compliance Manager?

A vital part of an organization’s governance, risk, and compliance strategy, a compliance manager is responsible for ensuring that the company or organization adheres to relevant laws, regulations, policies, and standards that apply to its industry and operations. 

In a board environment, a compliance manager is responsible for developing, implementing, and monitoring governance policies and procedures to ensure that the board operates ethically, transparently, and in compliance with relevant laws and regulations. 

Responsibilities of a Compliance Manager

A compliance manager is responsible for the following:

1. Developing Compliance Policies and Procedures

One of the primary responsibilities of a compliance manager is to develop, implement, and enforce comprehensive compliance policies and procedures. These documents serve as the foundation for the organization’s compliance program, outlining the standards and fiduciary duties that must be followed to ensure legal and regulatory adherence.

Compliance managers should regularly meet with a compliance committee to update and enforce compliance policies. A compliance committee agenda helps keep these meetings on track.

2. Auditing Compliance Practices

Regular internal auditing is another important part of a compliance manager’s role. This involves conducting routine assessments of compliance procedures to evaluate the effectiveness of work processes in real-time and identify any vulnerabilities. 

Compliance managers may use GRC tools to streamline this process. These audits help organizations uncover and correct issues before they escalate into significant legal or regulatory problems.

3. Training and Education

Effective compliance programs rely heavily on employee awareness and understanding. Compliance managers are tasked with designing and delivering compliance training programs that educate employees about compliance policies, regulatory requirements, and ethical standards.

Training should be tailored to the unique circumstances of each position and treated as an ongoing project rather than a one-time event. Educational materials should be regularly evaluated for their effectiveness and updated whenever relevant laws are changed. 

4. Risk Assessment and Management

The consequences of compliance failures vary depending on the type and extent of the violation. Noncompliance can result in any of the following actions:

• Lawsuits from employees or users
• Financial penalties
• Loss of trust in your service
• A decrease in productivity
• Injuries stemming from a failure to comply with safety regulations
• Product recalls due to a lack of quality assurance

Administering effective risk management processes is a vital part of a compliance manager’s role. They help the organization by identifying, assessing, and mitigating risks that could arise from noncompliance. 

Compliance managers often work with risk management teams, using statistical analysis and discussions to shield the organization from related damages. Obtaining board of directors liability insurance is just one way compliance managers protect their organizations against risk.

5. Compliance Reporting

Regular reporting on compliance activities and issues is necessary to keep the organization’s leadership informed. Compliance managers prepare detailed reports that provide insights into the effectiveness of the compliance program and highlight areas that require attention.

OnBoard Supports Leading Boards

Compliance managers play a pivotal role in ensuring organizations adhere to industry laws and regulations. OnBoard excels in supporting board meeting management and governance, offering features that compliance managers find invaluable. These include:

• Integrated compliance tools: Allows organizations to deploy customizable multi-level and granular control for sensitive data, including the ability to purge notes and annotations.
• Training modules: OnBoard offers training and educational resources to ensure board members and employees are well-versed in compliance requirements.
• Real-time reporting: The platform facilitates detailed compliance reporting, enabling transparency and informed decision-making.

In addition, OnBoard is certified in SOC 2, ISO 27001, and Data Privacy Framework. The platform streamlines compliance processes and enhances overall governance. 

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