The Importance of Building Open “Board-Compliance” Communication

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As fiduciaries, board members carry a responsibility to oversee many aspects of a company’s business – including regulations.

Ask yourself these questions:

Do the members of your bank’s Board of Directors know your compliance officer(s)?

Can each Board member describe the characteristics of this officer and what the compliance officer’s role is?

Board oversight of compliance is an expectation of federal and state regulators. And unfortunately, the complex topic of compliance is often under-communicated at the Board level.

Compliance Should Be a Regular Agenda Item for Board Meetings

Regulatory examiners can, and are, questioning the members of the Board about the role of the compliance officer. Board oversight is a critical piece of any compliance management system; therefore, an open line of communication between the Board members and the compliance officer is imperative.

Your Board should be asking questions, learning about the daily issues the compliance officer is faced with, asking what the compliance officer views as the greatest risks to the bank, and following up on examination reports. These conversations require direct contact between the Board and the compliance officer, once quarterly at a minimum.

Heather Campbell
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