For any business, it is essential to achieve regulatory and standard compliance. Compliance managers bear this obligation, as they play an important role in protecting businesses from legal and ethical issues.
From health and safety to data privacy, these compliance managers check the implementation of various rules and work together with various departments to ensure that everything is in order. As the demand for compliance experience grows, an increasing number of people are becoming interested in this subject.
In this article, we're going to explore who a compliance manager is and what the roles and responsibilities of a compliance manager are. From the best ITIL Foundation course online to what the salary expectations are, we will cover it all.
Who is a Compliance Manager?
Compliance managers guarantee that a company, its personnel, and its projects follow all required rules and requirements. This may include health and safety, environmental, regulatory, or quality standards, as well as any ethical rules in place by the company.
Compliance managers must stay updated on new standards and legislation that may influence their firm. They must be able to quickly and efficiently explain these changes to top management, usually a Compliance Director, and offer suggestions on how the organization should react.
Types of Compliance Manager
Regulatory Compliance Manager
They specialize in ensuring that a company follows industry-specific norms and standards established by government bodies.
Example: A regulatory compliance manager in a bank or any financial institution will make sure they follow the rules and regulations as per RBI or SEBI when it comes to financial markets.
Healthcare Compliance Managers
To keep the patients and employees safe, healthcare compliance managers make sure to maintain the standards in healthcare organizations by meeting the healthcare standards and regulations.
Example: In a hospital, the compliance manager must make sure that no infections are spread within the hospital. This measure is taken to protect the patients from any infections that can harm or threaten their lives.
Environmental Compliance Manager
The environmental compliance managers oversee the monitoring of a company's environmental performance and ensure that it follows the law on the environment. Their primary responsibility is to evaluate the company's present business practices and suggest methods for improving and meeting environmental targets.
Example: Tata Steel’s environmental compliance managers monitor air and water quality, waste management procedures, and factory emissions to maintain regulatory compliance.
Data Privacy Compliance Manager
They enforce all privacy-related rules and regulations. When a privacy incident or data breach happens, the Privacy Manager takes the lead in conducting the investigation. They will then monitor, track, and address any privacy concerns.
Example: A data privacy compliance manager in a bank ensures that sensitive information, such as financial records, is only accessed by authorized individuals. This can be accomplished using security measures like usernames and passwords or biometric verification.
Ethical and Corporate Governance Compliance Manager
These compliance managers convey the organization's ethical ideals, policies, and laws. They make sure that all their workers are fully aware of ethical concerns such as anti-bribery, anti-corruption, antitrust, conflicts of interest, and others.
Quality Management Compliance Manager
The Quality Management Compliance Manager is in charge of making sure an organization's quality management requirements and certifications are met. They guarantee that processes, goods, and services fit within the regulatory guidelines and industry best practices. They aim to improve productivity and reduce risks.
Example: HUL uses quality management compliance managers to verify that its production facilities meet quality standards. To ensure product safety and quality, these managers make sure that the Food Safety and Standards Authority of India laws and internal quality control process are followed.
What Does a Compliance Manager Do?
- Regular internal assessments or audits
- Responsible for supervising company operations and ensuring that all procedures and members follow the organization's rules and procedural guidelines
- Analyze product, compliance, and operational risks and develop risk management solutions
- Engage with supporting departments such as
- Regulatory
- Human resources, finance
- Quality control and assurance
- Research and development
- Environmental health and safety to ensure comprehensive compliance and effectiveness
- Trains and mentors staff
- Check if the work meets the standards set out
- Helps in the creation of work plans, performance reviews, and disciplinary actions
- Analyze potential compliance concerns
Characteristics of an Effective Compliance Manager
Industry Knowledge
Having a wide knowledge of the firm and industry in which a compliance manager is working is a must. They must always be ahead of the trend and be aware of developments or changes in legal or regulatory difficulties in their domains.
Innovation and Problem Solving
Every day is a challenge and a worry in the workplace. Having the ability to come up with solutions in such situations is a key ability. A compliance officer's position requires creativity and the capacity to deal with a variety of problems. They must assist organizations in considering numerous viewpoints and presenting innovative solutions to safety-related concerns.
Interacting with people
Among crucial compliance abilities, understanding people and maintaining a clear head are very important. This also helps compliance managers to establish confidence and credibility with their customers. They also interact with the various departments within an organization to ensure the requirements are being implemented correctly.
Organizational Skills
As part of their responsibility, compliance managers are required to work in a variety of areas, including industry tasks and departments. Organizational skills are required for successful compliance officers to deal with many audits, reports, and deadlines. It can help them create a reputation for being efficient and successful workers.
Analytical and Detail-Oriented
Compliance managers must be very detail-oriented when dealing with the finer details of compliance. Being able to analyze data and grasp the specifics of regulations and compliance can help promote effective workplaces, departments, and organizations.
Qualifications and Required Skills
A minimum bachelor’s degree is required for compliance managers. Accounting or economics, law, information technology, computer science, or business management are all acceptable subjects for a degree. A master's degree in related fields is often highly regarded.
Along with the qualifications, there are required skills that could help anybody thinking about a position as a compliance manager:
- Knowledge of legal principles
- Excellent communication abilities
- Strong attention to detail and problem-solving skills
- Project management skills
Education, Training, and Required Skills
A bachelor's degree program relevant to your chosen industry. Accounting, business, economics, finance, legal studies, management, and manufacturing are common degrees. A master's degree, along with a compliance manager's professional course, is an added advantage. Some famous institutions that are accredited and can help you in pursuing your compliance manager certification are
- KnowledgeHut
- American Bankers Associate
- Global Compliance Institution
- DOD Civilian Cool
Compliance Manager Careers
Understanding what is a compliance manager’s role may not be easy. Below, we will see what compliance managers do at different levels in an organization and what are the roles and responsibilities of compliance managers at these levels:
Entry Level
Understanding the complexity of laws and regulations and the value of risk management is a must at the entry-level position. An average salary received by an entry-level compliance manager is around ₹4.5 lakhs - ₹10 lakhs LPA (Source: Ambitionbox)
Mid-Level
These individuals are responsible for making sure their organizations follow laws, rules, and internal procedures while also managing risk and business strategy. These managers receive an average salary of ₹8 lakhs - ₹18 lakhs p.a. (Source: Ambitionbox)
Senior Level
They manage the compliance programs, policies, reporting, and practices for an organization or business. They also ensure that all activities follow regulatory requirements related to the governance of the organization as well as anything industry-specific. Senior managers get an annual salary of anything between 15 Lakhs - 40 lakhs p.a. (Source: Ambitionbox)
Compliance Manager Salary, Job Growth and Job Satisfaction
Compliance Managers are predicted to be in high demand, with over 698,330 new jobs created by 2029. This means a 16.54% annual growth for the following few years. Furthermore, the growing use of technology and globalization add to the demand for trained compliance managers.
Compliance manager is also one of the high-paying jobs which makes it attractive to choose this line of career. Here are some of the average salaries received by compliance managers around the world:
The compliance manager role is ranked 13th in the best business jobs. Between 2022 and 2032, the Bureau of Labour Statistics predicts that employment for compliance managers will rise by 4.6%. An estimated 17,200 jobs should become available over this time frame.
What is a Compliance Manager’s Salary in The Top 5 Countries?
Country | Average Salary |
United States | $75,000 - $150,000 |
United Kingdom | £30,000 - £65,000 |
Canada | C$70,000 - C$150,000 |
Australia | AU$90,000 - AU$150,000 |
Germany | €40,000 - €76,000 |
What is a Compliance Manager’s Salary in The Top 10 Companies?
COMPANIES | AVERAGE ANNUAL SALARY |
Amazon | ₹15.7 Lakhs (₹8L - ₹22L) |
ICICI Bank | ₹9.3 Lakhs (₹4L - ₹15L) |
Amazon Development Centre India | ₹15.3Lakhs (₹10.5L - ₹21.5L) |
HSBC Group | ₹13.2 Lakhs (₹8.5L - ₹16.5L) |
IBM | ₹10 Lakhs (₹5.8 - ₹17L) |
Axis Bank | ₹10.8 Lakhs (₹7.5L - ₹13.5L) |
AB InBev India | ₹32.7 Lakhs (₹15L - 40L) |
Wipro | ₹12.9 Lakhs (₹7L - ₹22.8L) |
Genpact | ₹11.1 Lakhs (₹4.5L - ₹17L) |
Wells Fargo | ₹20.9 Lakhs (₹13.5L - ₹28.1L) |
Salaries and benefits are among the most important elements impacting satisfaction with work. A compliance manager gets these benefits in spades, which gives them a high job satisfaction level. Compliance managers are ranked 13th among the best business jobs.
How to Become a Compliance Manager?
Bachelor’s Degree
Begin with a bachelor's degree program relevant to your chosen industry. Accounting, business, economics, finance, legal studies, management, and manufacturing are common degrees.
Master's Degree
The advanced degree may qualify professionals for higher-level roles. Choosing a specific area of specialization within a master's degree may make a person's talents more relevant to the needs of their current employment.
Work Experience
Interns are hired by businesses of different kinds, providing students with valuable experience before joining the workforce. They help them determine where they want to work after graduation.
Develop Compliance Manager Expertise
These are some of the most commonly required skills in the compliance manager role:
Skills | Percentages |
Oversight | 7.25% |
Risk Management | 6.99% |
Compliance Program | 5.80% |
Compliance Issues | 4.53% |
Risk Assessments | 4.25% |
PowerPoint | 3.87% |
Certifications
Certification is entirely optional. It can, however, be used to demonstrate expertise, find a job, get a raise, network with other specialists, or maintain skills over time. You can get your professional certificate through IT Service Management certification courses online.
Some of the top Compliance Certificates are the Certified Anti-Money Laundering Specialist (CAMS), Certified Information Systems Security Professional (CISSP), Certified Financial Crime Specialist (CFCS) Certificate, and others.
Challenges that Compliance Managers Face
Below are instances of what does a risk and compliance managers do when faced with a situation:
Client and security certification audits take forever to complete
Auditing is a lengthy process. Due to a lack of in-house auditors and low budget, small and medium-sized organizations may struggle to maintain audit compliance.
Solution: A centralized compliance management system that automates operations and offers fast access to prior audits, cross-departmental activities, and automatically generated reports can drastically reduce audit personnel requirements while also ensuring accuracy.
Handling complaints and resolving issues
A complaint can take many hours to resolve, especially if various departments must be cross-verified. In the absence of dispute and complaint management technology, agents may find themselves spending 25% of their time managing complaints and disagreements.
Solution: Automating the complaint processing process can help to reduce the time spent resolving disputes. This allows stakeholders to quickly direct complaints to the appropriate officers while also providing mechanisms for speedy resolution.
Compliance Training is a never-ending task
Failure to recognize gaps in training might represent possible dangers to the organization regarding policies, procedures, client requirements, and the most recent CFPB laws.
Solution: Make online training modules available to agents. All you have to do is update internal compliance rules and all related documents regularly to reflect the new CFPB requirements and track agent certification fulfillment in the system.
Conclusion
Becoming a compliance manager is a challenging but rewarding experience. It demands a strong educational background, relevant experience, and a diversified skill set. However, if you want to know what is a compliance manager and if you want to start your career as a compliance manager, you can obtain the necessary skills and information for a compliance manager by taking the KnowledgeHut ITIL Foundation course online.
