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The Chief Compliance Officer (CCO) becomes a member of the executive team. The CCO works full-time within the organization to enforce regulations; analyzes proposed laws to determine regulatory implications; monitors trends; directs contract personnel; coordinates information and prepare reports to the board; receive and refers complaints; provides consultation and advice to other administrators.

Pros and cons of hiring a Chief Compliance Officer

The position may be occupied by an inexperienced internal candidate or new hire. Extensive orientation and continuing education may be needed. Executives are not easily convinced to contract with an independent compliance consultant. They voice several advantages to hiring an internal chief compliance officer, including::

• Noncompliance status of the organization is confidential. Internal policies restrict sharing confidential information with external organizations.
• The CCO better understands internal affairs; has a vested interest in the success of the employer; values career advancement and job security.
• The salaried, vested staff member stays to complete essential task, implement complex compliance standards and shoulders specific responsibilities.

The arguments against hiring the internal compliance officer are equally compelling.

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