What is a Risk and Compliance Professional?

A risk and compliance professional is an individual who has been trained to protect data security, consumer privacy and financial transparency. The majority of all risk and compliance professionals work in the financial industry and maintain certification through the International Association of Risk and Compliance Professionals (IARCP), which offers their popular Certified Risk and Compliance Management Professional (CRCMP) program.

Financial Risk and Compliance Professional

Risk and compliance professionals are usually employed by financial firms. They are in charge of setting up proper policies and auditing internal controls that reduce risks. They ensure that there is a comprehensive system of checks and balances that prevents fraud and inefficiencies while ensuring compliance with federal financial regulations. Financial risk and compliance professionals support their employers by fulfilling compliance requirements and providing management with insights that control exposure to financial risks. They optimize their employer’s abilities to identify dangers, evaluate scenarios, determine responses and monitor solutions. They use their expertise to identify financial vulnerabilities, streamline processes and maximize business development opportunities.

Audit Risk and Compliance Professional

Risk and compliance auditors perform financial reviews that ensure compliance with federal regulatory requirements. These include a variety of acts, such as the FCRA, FDCPA, SCRA, Fair Lending ECOA, Credit act of 2009 and the Truth in Lending and Savings acts. These comprehensive audits integrate financial, operational, regulatory and technology risks. Auditors support business monitoring activities designed to assess the impact of control risks and deficiencies. They lead formal external audits with regulatory representatives and key executives. In order to prepare for this, they first perform internal audits that primitively expose process, reporting and decision making deficiencies. Auditors strive to identify legal non-conformities during internal audits in order to minimize regulatory fines. Audits involve assessments of data accuracy, documentation quality, managerial responsiveness and system effectiveness.

Operational Risk and Compliance Professional

Operational risk and compliance professionals work for large financial or IT enterprises. They are responsible for identifying, assessing and mitigating operational risks. They lead risk control programs that involve different departments, such as IT, sales and accounting. They facilitate risk management activities through strategic planning, conducting awareness workshops and meeting with executives. They assist corporate decision makers with developing forms, standards and processes that automatically assess and mitigate risks. They perform auditing tasks, such as evaluating data integrity, collection procedures and sharing protocols. They set and monitor operational risk metrics and reports that review key performance indicators. They train management on how to effectively implement risk management models.

Legal Risk and Compliance Professional

A risk and compliance professional who deals with legal regulations is in charge of ensuring compliance with global financial laws. They implement and monitor global operational risk mitigation programs that support the company’s governance and compliance framework. They develop customized risk standards and best practices for business entities in different countries. They perform corporate threat and vulnerability assessments that allow them to implement remedial solutions. They track a wide range of security and financial vulnerabilities across the globe. These risks typically involve international taxes, money transfers and expatriate wages. They work with foreign risk and compliance professionals in overseas offices to create risk compliance solutions that mitigate local security threats and protect corporate assets.

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Risk and compliance professionals need technical, leadership, strategic planning and change management skills. They also need strong business acumen, cost consciousness and financial knowledge.