The Sapin II law passed at the end of 2016, which makes it compulsory for companies with a turnover of more than 100 million and more than 500 employees to take measures to prevent corruption, has made a major contribution to the awareness and implementation of compliance in French companies. The first inspections carried out by the French Anti-Corruption Agency accelerated this awareness and led to the transformation of organisations to comply with the new requirements.
While it is clear that the compliance function is becoming more structured, our recruitment mandates reveal significant variations in maturity depending on the sector of activity, which is more or less regulated, the type of organisation, the sensitivity of the managers, etc.
In France, more than 50 % chief compliance officers are also initially legal directors. Then the company matures and opts for an organisation that enables it to meet its challenges with a focus on risk.
Legal approach/compliance approach...risk approach
The legal expert defines whether a project is legal or not. They juggle with regulations and standards to define what the company and its stakeholders must respect.
To become chief compliance officer, a legal director needs to have a real appetite for business, a risk manager mentality and a business partner vision.
The compliance officer analyses how to manage the risk, even if it is legal. For example, a contract with a distributor may be legal, but involve colossal risks.
Close to both management and operational staff, they are involved at a very early stage in strategic thinking, projects and operations. So there is a dual requirement - soft skills and competencies on the one hand, and specialised positioning within the organisation on the other. Knowing the business means understanding compliance risks, which you have to learn to control by linking them to business risks - which you are more or less willing to take - and to insurable risks (fire, water damage, plant, etc.). Not forgetting specific risks such as the family assets to be preserved in family businesses.
What is the role of the HRD?
This compliance approach to the risk/business ratio impacts both organisational decisions and processes, and even the company's structure and remuneration. For example, variable pay for sales staff could be indexed to quantitative and qualitative targets.
As a strategic and visionary player, the HR Director, together with the Compliance Officer, helps to redefine key values and behaviours. As the aim of the compliance programme is to achieve the company's objectives in the safest possible way, it must be aligned with its DNA.
The French Anti-Corruption Agency also checks that the company has a structured compliance organisation.
Working in partnership with HR departments on chief compliance officer positions enables the role to be positioned as accurately as possible within the organisation, a task as crucial to the success of the project as the definition of a precise job description.
The aim is to recruit a strong compliance officer. This person must be able to:
- implement a real, not cosmetic, programme,
- the right tone,
- the relevant discussions to properly assess the risks,
- make the right recommendations and decisions.
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