Compliance Survey: CCO Fear and Insufficient Resources Causing Talent Drain
A compliance survey sponsored by law firm DLA Piper reports that concerns about personal liability and resources are driving talent out of the profession. According to the survey, 65% of respondents said that “increased scrutiny would have an impact on their decisions to remain CCOs or to accept new CCO positions.” Compounding the problem, only 1/3 of respondents claimed to have sufficient resources to do their jobs. DLA Piper asserts that the tension between heightened personal liability and stunted resources “could drain the industry’s talent pool, for instance, acting as a deterrent for early-to-mid career professionals.”
OUR TAKE: Firms should spend at least 5% of revenues on compliance resources including salaries and technology. The talent drain also suggests that firms consider other alternatives to compliance staffing such as outsourcing and co-sourcing.