So your business is growing, and that's good. But when you add employees, assets, services or other elements, your business naturally becomes more complex. As your business grows, different laws and regulations may come into force. If you are at a point where it becomes difficult to keep up with all the rules you have to follow and monitor whether your employees fulfill their legal and ethical responsibilities, it may be time to look at hiring a compliance officer.
What is a compliance officer and what do they do?
A compliance officer is someone who ensures that your company fulfills all its legal and ethical responsibilities and that employees follow internal company policies, rules and guidelines. Depending on your business, this can take many forms, for example:
- Ensure that employees know and follow laws related to the privacy and handling of sensitive customer information.
- Helps your company and staff understand and follow complicated laws and regulations.
- Make sure your company has the necessary licenses and permits.
- Stay up to date on important regulatory changes in your industry.
- Provide preventive education and guidance for risk management.
A compliance officer is also often responsible for enforcing consequences for anyone who violates company policy, as well as helping you deal with any consequences for your company.
Advantages of having a compliance officer:
As an entrepreneur, it is your responsibility to know the law and follow it. And breaking the law can have serious consequences. Violations can result in significant fines, not to mention the damage it can cause to your company's brand and reputation. A good compliance officer can save you a lot of money and difficulties and prevent you from ending up in a situation that cannot be repaired.
Tips for hiring a compliance officer:
Training and experience: A good employee will receive the training required to understand the laws and regulations that apply to your industry (in larger companies compliance officers are often lawyers or have advanced degrees) and also have knowledge of your industry as a whole.
Certification: Even if you can not get a degree in compliance, you can get a certification to be a compliance officer in a specific area, such as healthcare or banking. These certifications require participants to pass an exam after receiving special training and with one ensures that your employee has at least the basic qualifications to perform the job.
People Skills: Your compliance officer may understand the laws and policies that apply to your company, but they must also be able to communicate them to others and support your staff in implementing them.
Adding a compliance officer to your staff is a big decision, but if it's time for your company to take that step, it's one you will not regret.
For business insurance questions, call or contact Keller-Brown Insurance Services today.