Hiring the right person for the job requires valuable time and resources. Especially with risk management roles, business leaders and decision-makers must be vigilant in finding only the top and most qualified professionals in the market.
As technology rapidly evolves, innovative solutions are constantly created. However, complex challenges pose new threats to organizations, privacy, and safety.
This blog will discuss how organizations can increase security by sourcing the right expertise in compliance, risk management, and regulatory frameworks.
Why Risk Management Matters for Your Business
Compliance is crucial to businesses, especially in finance, healthcare, and tech industries. One oversight could lead to financial repercussions and potentially destroy a company’s brand image. It could also drive investors and business partners away and damage your reputation in the job market.
According to LexisNexis Risk Solutions, the cost of financial crime reached $56.7 billion in both the US and Canada in 2022.¹ This has increased by 13.6 percent from the previous year. Technology is on the rise, and so is the risk of cyber threats.
On the other hand, poor risk management can cost businesses up to $14.82 million annually, according to the Ponemon Institute – three times as expensive as the cost of compliance.² Here are some notable businesses that failed to comply with regulations:
- Marriott International was fined $23.9 million for non-compliance with GDPR.³
- Volkswagen had to settle a whopping $30 billion due to their software allowing diesel engines to cheat emission tests.
- JPMorgan violated recordkeeping procedures and was fined $200 million.
Aside from the costly penalties, these organizations lost their brand reputation, leading to wide consumer distrust, reduced stock prices, a drop in sales, and decreased market share. Regulatory compliance, data protection, ethical practices, and proper corporate governance are crucial to staying compliant with regulatory requirements.
Benefits of Specialized Recruiting for Risk Management Roles
To ensure compliance policies are met, you can hire reliable compliance officers and managers and actively pursue compliance training. This protects your organization against compliance risks, internal audits, and legal obligations. To drive that point, here are 6 benefits of ensuring compliance in your organization:
1. Improved Decision-Making
Adding in-house compliance officers and managers to your teams helps the business mitigate potential risks effectively. Through their knowledge and expertise, you can ensure compliance programs are enforced, regulatory standards are met, and best practices in risk assessment are implemented seamlessly.
2. Business Continuity
Events like cyber-attacks and supply chain breaches can happen at any time. In fact, according to IBM, 19 percent of breaches are supply chain attacks.⁴ By recruiting knowledgeable individuals who understand various compliance challenges, you can remain compliant and ensure proper strategies are in place.
3. Better Relationships with Stakeholders
Investors, employees, suppliers, and customers will feel more confident in your business if you can show that you’re prepared for any risks. This can make your company more attractive compared to other businesses, making you a valuable player in a competitive market.
4. Compliance with Laws and Regulations
Laws and regulations can change depending on consumer trends, market perception, and technological advances. This can significantly affect your company, operations, and regulations. To navigate these changes effectively, stay updated with comprehensive compliance measures to avoid costly penalties, reputational damage, and operational disruptions.
Read more: The Future of Finance: How to Remain Agile Amidst Changing Market Conditions
5. Prioritization of Critical Issues
Some risks may not be as detrimental to your business compared to others. With the right team, your company can assess each threat and decide which requires immediate attention and which can wait. This strategy allows you to refocus your time and resources on more impactful tasks.
6. Proactive Risk Handling
Instead of fixing things when they go wrong, be one step ahead and implement proper risk management solutions. This ensures that you have the proper strategies in place before a threat even occurs. Proper detection will reduce the chances of data security and valuable resources being breached.
How to Ensure Compliance with Regulatory Requirements? 8 Recruitment Strategies
Effective compliance management starts with the talent search. This ensures compliance requirements in your organization are met. Here’s how you can transform your talent acquisition process:
1. Define the right candidate profile.
Risk management is not always about cyber threats. There are many areas that can cause disruption in your organization, including:
- Operational
- Financial
- Reputational
- Environmental
- Political
- Health-related
Make sure to allocate resources to each function to ensure overall compliance.
When looking for talent, clearly define the open role to help candidates identify whether they are the right person for the job or not. This will also help you in pooling more qualified individuals for the role. Targeting specific niche skills will add knowledge to your team through industry-specific regulation expertise.
2. Offer competitive salary and growth opportunities.
To remain competitive in the industry, you need to match your salary with the industry standard and offer attractive benefits against your competitors. Salary and compensation remain among the top reasons applicants choose an employer.
However, aside from that, employees also value strong career progression plans to bolster their careers. If you can provide and ensure long-term success within your company, you can attract more talented individuals into your organization.
3. Enhance your reputation and employer branding.
More than just polishing your employer brand, make it a core value in your organization and culture. The more you can position yourself as an attractive employer, the less you’ll have to allocate in recruitment costs. According to LinkedIn, businesses with a desirable employer brand can lower costs by 43 percent, leading to better allocation of funds for employee training and development.⁵
This encourages employees to talk positively about your company, which in turn attracts candidates, reducing your recruitment efforts. To maximize this, try launching a referral program as well. This boosts the morale of your current workforce, who will benefit if their referrals are hired. It also ensures that you get access to more candidates.
4. Leverage the power of data.
While there are proven strategies to integrate into your process, it would be a waste not to evaluate how these methods benefit your company. One of the main uses of data is to analyze trends and how they can affect a business.
By looking at the right metrics, you can evaluate your recruitment process, minimize bottlenecks and inefficiencies, adjust your approach, and optimize your strategies using data-driven decisions. Here are some of the valuable metrics you should consider tracking:
- Quality of hire
- Time to hire
- Time to fill
- New hire turnover
- Source of hire
5. Elevate the recruitment process and candidate experience.
According to Careerplug, 52 percent of candidates declined job offers due to bad candidate experience.⁶ This shows how important the candidate experience is to a job seeker when finding employment. Here are a few things you can do to ensure a positive recruitment process.
- Make it easier for candidates to apply by reducing lengthy and repetitive application forms.
- Utilize applicant tracking systems (ATS) and automated scheduling processes.
- Clearly communicate the recruitment process and provide timely responses.
- Streamline your interview process and focus on their skills and expertise.
- Keep healthy relationships and provide feedback despite the result of their application.
6. Use a skills-based recruitment approach.
Conventional assessment may no longer prove effective in today’s dynamic landscape. Traditionally, recruiters looked at a candidate’s resume, educational attainments, work history, and references. Instead, hire your employees based on their skills, potential, and overall organizational fit.
One of the key benefits of skills-based hiring is the added importance given to a candidate’s ability to develop valuable and transferable skills in the workplace.
7. Maximize your sources.
Finding talented compliance officers on regular job boards and using traditional methods may no longer be enough to source them. Instead, utilize all relevant channels you can access to increase your reach. Look in niche job boards and specific job markets. You can also use social media like LinkedIn and Facebook to your advantage and widen your search. Here are other sources you can tap:
- Professional associations and networks
- Industry conferences and events
- Employee referral programs
8. Connect with a recruiting agency.
Recruiting firms like Madison-Davis provide broad access to talented individuals. These agencies work with employers and employees and have vast knowledge in specific industries. For example, Madison-Davis specializes in niche roles in risk management, tech, finance, and executive search. If you want to access these professionals, recruiting agencies can offer innovative solutions to businesses.
Furthermore, most recruiting firms handle more than just recruiting. They also manage employee documentation, taxation, compensation, and more. More than just filling your roles, you’ll also benefit from freeing up valuable time and resources to focus on your core business functions.
How to ensure compliance in the workplace? Talk to Madison-Davis.
Madison-Davis offers a wide range of talented professionals in risk management, legal, and compliance. We tailor-fit candidate matching to ensure only qualified candidates join your teams, which includes executive search and talent acquisition for permanent and temporary roles. Our specialized services also include supporting professionals throughout their employment journey to ensure they remain competitive within your organization.
With over 40 years of experience in executive search and talent acquisition, we are experts in connecting organizations with top-tier professionals. Let’s have a conversation today so you can gain access to our tailored business solutions.
References
- “LexisNexis Risk Solutions Report Reveals the Yearly Cost of Financial Crime Compliance Reaching $56.7 Billion, a 13.6% Increase for Financial Institutions in the United States and Canada Combined.” LexisNexis Risk Solutions, risk.lexisnexis.com/about-us/press-room/press-release/20220929-report-reveals-the-yearly-cost-of-financial-crime-compliance.
- Globalscape and Ponemon Institute. “THE TRUE COST OF COMPLIANCE WITH DATA PROTECTION REGULATIONS.” Globalscape, Dec. 2017, static.fortra.com/globalscape/pdfs/guides/gs-true-cost-of-compliance-data-protection-regulations-gd.pdf. Accessed 22 Nov. 2024.
- Adm_Sws. “What Is Non-Compliance Costing Your Business?” Shea Writing & Training Solutions, 15 July 2024, www.sheaws.com/what-is-non-compliance-costing-your-business.
- Cost of a Data Breach 2024 | IBM. www.ibm.com/reports/data-breach.
- LinkedIn Data Proves the Impact of a Strong Talent Brand. www.linkedin.com/business/talent/blog/talent-acquisition/roi-of-talent-brand.
- Farris, Shelby Palmeri. “2024 Candidate Experience Report.” Career Plug, 31 Jan. 2024, https://www.careerplug.com/blog/candidate-experience-statistics/
