Compliance professionals face growing challenges, says ASIC chair
Compliance professionals face growing challenges, says ASIC chair | Insurance Business Australia
Insurance News
Compliance professionals face growing challenges, says ASIC chair
Longo stresses the importance of trust and integrity
Insurance News
By
Jonalyn Cueto
ASIC chair Joe Longo (pictured) underscored the strategic role of compliance professionals in modern businesses during a speech at the Australian Compliance Institute Annual Conference. Addressing a packed audience, Longo emphasized that compliance is more than meeting legal obligations; it’s about fostering a culture of integrity, ethics, and trust within organisations.
Longo noted that it is the job of compliance professionals to ensure businesses practice what they preach, creating trust among consumers and investors.
“A profitable business is – and must be – a compliant one,” Longo said.
Strategic role of compliance professionals
Longo described compliance professionals as key players in the business framework, who not only ensure legal obligations are met but help shape ethical cultures. He urged compliance officers to adopt a proactive approach by asking critical questions about risks, obligations, and systems, thus ensuring that organizations remain legally and ethically sound.
He noted the growing influence of compliance roles in the boardroom, stressing the importance of continuous learning and upskilling. “The demands and expectations on compliance professionals are growing exponentially,” Longo said, citing a recent KPMG global survey where 84% of compliance officers anticipated increased regulatory scrutiny.
Challenges in compliance: Technology, ESG, and cybersecurity
Longo highlighted how technology and the global emphasis on sustainability have added complexity to compliance roles. With rapid advances in technology, businesses face heightened risks such as cyberattacks and data privacy concerns. Additionally, climate-related reporting is becoming a key focus as Australia’s new law on mandatory climate risk disclosures takes effect.
He also addressed the rise in “greenwashing” concerns, where businesses exaggerate their environmental credentials. ASIC, Longo noted, is focused on ensuring transparency and truthfulness in sustainability claims to maintain consumer confidence.
The need for a strong compliance culture
Longo emphasised the importance of corporate culture in compliance efforts, urging businesses to go beyond “tick-box” approaches. A strong compliance culture, he explained, should reflect the core values of the organization, with a focus on putting customers at the centre of operations.
“Written policies and procedures provide the framework. But compliance in practice requires a culture of integrity, ethics, and trust,” Longo said, pointing to instances where even well-resourced companies have failed due to hollow compliance efforts.
Looking ahead
Longo identified the rise of artificial intelligence (AI) as another key area for compliance professionals to monitor. He warned of risks associated with AI, such as bias, misinformation, and ethical concerns, calling for a robust regulatory framework to ensure responsible use of the technology.
In conclusion, Longo called on compliance professionals to embrace their roles as trusted advisers to the board, stressing their ability to influence organizational success through vigilance and commitment to ethical standards.
“You play an influential and strategic role in the boardroom – a role that is critical in ensuring effective compliance,” Longo said, reinforcing the essential nature of their work in the evolving regulatory landscape.
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