Optimising board oversight of compliance as a risk governance instrument
Abstract
Technological advancements, extended understanding of board members' fiduciary duty and corporate scandals have put an increasing focus on board oversight of compliance as a risk governance instrument. To build and sustain board oversight of compliance, which satisfies regulatory obligations, organisational requirements and boards' needs, is an ongoing challenge and requires significant focus by compliance teams at financial services organisations. This paper outlines a framework for board compliance reporting as a two-way communication process to ensure that boards remain on top of their oversight obligations in today's era of trust, in which stakeholders are more broadly seeking an effective demonstration of organisations' compliance responsibilities. In this practice paper five core levers are defined which are required to be in place in the board compliance reporting, in order to optimise board oversight of compliance as a risk governance instrument: adaptability, empathy, active listening, transparency and effective dialogue.
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Author's Biography
Ilona Niemi is a globally experienced Chief Compliance Officer (CCO) with a track record in insurance, financial services and third party travel and medical assistance compliance. Ilona served most recently as the Group CCO and Chief Privacy Officer for Co-Operators overseeing the enterprise compliance programme for property and casualty (P&C) and life insurance, wealth management products, institutional investments and brokerage operations. Until May 2020 Ilona was VP Head of Compliance, CCO for Zurich Canada and part of Zurich Canada Executive Leadership Team. Prior to transferring to Zurich Canada, Ilona held the role of Global Head of Compliance Oversight and Reporting at Zurich Insurance Company in Switzerland. Ilona joined Zurich Insurance Company in 2008 as Head of Corporate Center Public Policy Issues, managing Zurich's International Advisory Council. Preceding that, Ilona had varying positions in management, strategy and communications consulting in Germany and Washington DC and served as Head of EU Health, Labor & Social Affairs in Brussels. Ilona is a member of the advisory council for the Ted Rogers School of Management Law and Business Program, and advisory board and faculty for the Osgoode Hall Law School Regulatory Compliance Management Program. She acts as co-chair of the industry groups of WomenExecs on Boards. Ilona is author of the book, ‘EU Council Presidency in an Enlarged European Union’, and a frequent speaker at regulatory and compliance conferences.
Citation
Niemi, Ilona (2023, June 1). Optimising board oversight of compliance as a risk governance instrument. In the Journal of Risk Management in Financial Institutions, Volume 16, Issue 3. https://doi.org/10.69554/YMJE6410.
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