Does it make sense to outsource compliance in companies?
Advantages of Compliance Officer as a Service (COaaS) and why this service can be a suitable solution for companies.
Legal compliance is not only of interest to “big business”. The obligation to comply with the legal framework affects all entrepreneurs equally. In an increasingly regulated world, it is especially important for SMEs to be compliant, as issues such as increasing European legislation regarding reporting requirements or whistleblower protection rules can result in severe financial penalties in case of non-compliance. Especially for SME entrepreneurs, these sanctions can be critical. Nevertheless, hiring an in-house lawyer or implementing an in-house legal department is usually not feasible financially or in terms of time given the size of these companies. The idea of Compliance Officer as a Service (COaaS) addresses precisely this problem. By providing an external Compliance Officer, the service can be flexibly adapted to the individual needs of the customer company. Outsourcing the compliance function is particularly useful when it is only needed on an ad hoc basis. Tasks that focus on this operational area can easily be transferred to the COaaS.
What is a Compliance Officer?
Compliance is a broad term that essentially describes the observance of all laws, internal guidelines or industry-specific regulations. In this context, the core tasks of the Compliance Officer are to maintain and check the company’s legal compliance. The spectrum of activities ranges from training employees and advising management to monitoring current legal developments. The introduction of active compliance management by the Compliance Officer also ensures efficient risk management. As a result, fines can be avoided and a competitive advantage can be achieved.
Advantages of the external Compliance Officer
Five essential aspects that speak for COaaS
Rapid action – in case of acute need
The search for suitable personnel for a permanent position, especially in the compliance area, is enormously time-consuming and resource-intensive due to the current shortage of skilled workers. When there is an acute need, companies cannot afford to go through a marathon of aptitude tests, but need professional help promptly. Compliance as a Service and the service of the external Compliance Officer can be used in a targeted manner in this context to avoid months of waiting times or time-consuming onboarding processes.
In between – Compliance Officer as an interim solution
To bridge the process of recruiting specialists, Compliance Officers can also be cleverly deployed as a transitional solution. In this way, acute personnel needs in the compliance area can be covered promptly and later replaced by selected, permanently employed specialists.
Time is money – flexibility and resource savings
The flexible use of Compliance Officer services in companies can save enormous financial resources. In contrast to a classic permanent employment model, COaaS is remunerated according to the workload.
No acute need = no ongoing salary costs
Experience – learning from others’ mistakes
External Compliance Officers have a wealth of experience. Through the ability to individually apply and execute compliance in various organizations, they have gained extensive experience and knowledge. Through years of practice, the Compliance Officer can skillfully communicate sound compliance management to the team.
Start-up’s – Compliance for young companies
Especially newly established companies in particular need to embed compliance in their corporate culture. Companies that practice compliance in their day-to-day business win over investors, create a competitive advantage for themselves and avoid high fines in the startup phase. Outsourcing the compliance process can save energy and resources that startup pioneers would otherwise need to build the organization. In addition, startups benefit from the experience of trained Compliance Officers and avoid unconscious missteps.
