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Stimulating Discussions at ECS “End of Summer” Roundtable

How should the Chief Compliance Officer work with the Chief Risk Officer and the Head of Internal Audit? Who should report to whom? When should one inform the other on matters they are working on?

These were among the many questions that were debated at the August 25 Leadership Working Group’s end of summer roundtable, held in the lively Seefeld quarter of Zurich. Eighteen attendees took part in the roundtable and contributed to the invigorating discussion kindly hosted by SFR Tobacco International/Reynolds American.

A few key points emerged: 1) each of these functions is critical for providing independent views and reviews, 2) ideally they should be equal partners, with none reporting to the other, 3) differences may be seen among industries, including in some where the CRO only focuses on financial or other more specific risks, 4) the area of operational risk should bring the Chief Compliance Officer and the CRO to a regular dialog, and 5)the extent and nature of cooperation and exchange is situational… it may be more or less intense in different times or on different matters.

The event concluded with further discussion at a nearby pub where there was no disagreement on the pleasantness of social interaction among people sharing similar passions for the importance of compliance and ethics. Further roundtables on different focused subjects are planned for the future.