Questions to Ask Before Hiring a Compliance Officer

It is a difficult task to meet the compliance requirements and regulations. To overcome the audit anxiety and provide year-round peace of mind, businesses are looking at the advantages of having an in-house compliance officer. The role of a compliance officer depends on the size and the sector of your industry. According to the nerc standards, it is very important to have a compliance officer in your organisation as they handle the discipline amongst the employees. A compliance officer should be fair, modest and diligent. They should also be proactive.

Normally, a compliance officer has to manage ethics and compliance in your business, although the detailed job will differ from organisation to organisation.

Why Should you hire a compliance officer?

  • Plans and implements the appropriate control systems to minimise legal violations.
  • To control efficiency and effectiveness to perform continuous improvements.
  • To identify the mistakes made by the organisations.

When hiring a compliance officer, you need to consider several things. Here are some questions you should ask a compliance officer before hiring him.

1. How do you work with a compliance team or committee?

When you plan to undertake a new compliance initiative can be a large project. But if your credit union is lucky enough to have the required resources to have a team, for this reason, you need to ensure that the officer you’re looking to hire is willing to use the help when he is planning for implementation.

2. How do you stay updated with the regulatory laws and new changes made?

Your compliance officer needs to be updated with any required changes that are important to protect your organisation from any misuse. These resources are available to help prepare for these changes, such as joining the committees and chat groups.

3. What efficiencies would you enact to help the company to avoid making mistakes?

Your compliance officer should know how to enact to help the organisation, and they should know about the incorporation of the available technologies as it can help to automate some specific processes in the credit and lending environment. The use of databases that are highly recommended to help streamline and assess the risk that can help the process of deciding while adhering to the specific requirements.

4. Do you have any knowledge of core processing technology regarding compliance?

Your compliance officer should have all the knowledge of the core processing technologies regarding compliance. The correct core technology will help facilitate the observation and make it efficient by easing the compliance burdens implied on your organisation. You need to partner up with a good core technology provider as it is essential.

5. What steps do you take when you roll out new credit union regulations?

Making sure that your staff is completely educated on the new regulation is essential as they are always on the frontline of fraud protection, and they can look out for something that doesn’t seem right. They need to be aware and properly trained in the proper procedures to follow the regulations placed by the government.

6. How do you handle any incidences related to member fraud?

You need to assess the experience they have in handling fraudulent situations that could come up or any kind of violations the company might’ve encountered. They should know how the fraud was found out and how will it be resolved.

Staying compliant and updated with the all-time changing compliance and the environment is a full-time job. So, choosing a capable, intelligent, up to date, and resourceful compliance officer is essential for your organisation. You need to hire a compliance officer if you have already not done it. So ensure that the person you hire knows how important it is to know all the information and knowledge and you’ll be good to go. You can find out more about Nerc Cip as well.

This post contains affiliate links. Affiliate disclosure: As an Amazon Associate, we may earn commissions from qualifying purchases from and other Amazon websites.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.