CHALLENGES FACING CHIEF COMPLIANCE OFFICERS

R&C: Could you outline the key challenges facing chief compliance officers (CCOs) in the current market?

Matsuo: We are in a time of intense policy discord, economic uncertainty and continuing technological advancements, which makes the role of the chief compliance officer (CCO) critical. CCOs are facing ‘business as usual’ challenges coupled with continuously evolving risks. They need to anticipate and mitigate stakeholder risks, including increasing regulatory and board expectations and scrutiny. They need to adapt to new regulatory requirements, such as cyber, data privacy, sanctions and trade, and climate. They need to utilise data analytics and modelling, and enhanced process automation. And they need to ensure effective business controls are dynamically linked to changing regulations and business standards. These challenges are clearly being driven by factors such as expanding supervisory and exam ‘perimeters’, newly introduced rules, and investigative and enforcement actions.

Jul-Sep 2023 Issue

KPMG LLP

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