Compliance

Shifting Perspectives: Turning Compliance Teams into Trusted Advisors

Xavier Sanchez is a Managing Director at CFGI, leading the Risk Advisory practice in the New York Metro area. He brings over 13 years of experience, providing clients with business and technology audits, as well as providing control design assessment and process improvement services. Xavier has led numerous SOX and Internal Audit engagements for clients ranging from start-ups to Fortune 500 companies throughout his career at CFGI. He focuses on providing his clients with solutions to build strong, efficient internal control systems and practices that support their strategic objectives.

As a consultant in the risk mitigation and compliance space, I always strive to be my client’s advisor on their risk and compliance needs. One thing I’ve learned over the years is that these needs can vary significantly – on the basis of company size, industry, or even organizational culture.

That’s why FloQast’s recent market research into the areas of risk and compliance struck a chord with me. This survey dug into the “why” behind organizational views around risk and compliance, and in many ways, validated my own experience.

Consistent with the survey results, I’ve found that when organizations put a strategic approach to risk navigation in place, the compliance professionals behind that vision may be increasingly viewed as advisors, as opposed to “check the box” task managers. For me, that’s what brings the most job satisfaction, and this is a realization I’m optimistic more organizations will begin to make, especially knowing talent retention is only going to become more critical as fewer individuals enter the accounting and finance industry.

The Pitfalls of a Tactical Approach

Digging further into the survey results – it’s easy for professionals and organizations to get sucked into a non-strategic tactical approach to risk and compliance, focusing on immediate tasks rather than strategic objectives.

This approach can limit the achievement of the larger goals and opportunities for significant contributions to an organization’s success.

The Benefits of Strategic Risk Navigation

Unlike those stuck in the day-to-day grind of administrative compliance tasks, individuals who focus on strategic risk navigation have the opportunity to be forward-looking, a benefit of the strategic approach.

This opportunity is not merely a perk but a function of their role, allowing them the time and space to offer suggestions, take a broader view, and provide insights with long-term implications.

For an effective strategic approach to truly take shape, it is essential to have people who can step back, make recommendations, and envision the bigger picture. In my personal experience and consistent with the survey results, professionals prefer to be advisors over disciplinarians, and being viewed as advisors leads to much greater job satisfaction.

A Real-World Example: Transforming SOX Compliance

I’ve lived this phenomenon with my own team. In one instance, during one of my clients’ initial Sarbanes-Oxley (SOX) years, we assisted them with adopting a more strategic approach to their risk compliance.

We faced extremely tight deadlines to implement a SOX internal control framework. Initially, the implementation began with a “check the box” approach centered on the tasks necessary for SOX compliance. However, as the project progressed, my team and I focused not only on instructing the client on which tasks needed completion but also on providing them a deeper understanding of the risks that needed mitigation and the rationale behind the required controls.

This perspective allowed the client to consider SOX compliance strategically and to think about how to integrate SOX requirements into their existing processes rather than treating them as mere items on a checklist. They considered what standard operating procedures (SOPs) they could implement to ensure accountability and efficiency when executing their controls.

Throughout the implementation, our conversations shifted from a task-oriented focus to a broader dialogue on addressing the risks inherent in their control environment. It turned my team from mere “paper pushers” into valuable strategic assets for the client – and that made all of us feel pretty good.

Unlocking Potential Through Strategic Risk Culture

A focus on contributing to a strategic approach provides a sense of respect and a belief in one’s ability to add value to the organization. It’s worth mentioning, too, that feeling respected often correlates with feeling fairly compensated.

By fostering a culture that embraces and values an approach to risk centered on strategic navigation, organizations can unlock the potential of their risk management teams, leading to a more dynamic, satisfied, and effective workforce.

Xavier Sanchez