Coordination, Communication and Reporting in Compliance Management Technical Note

• Nigeria
• Coordination, Communication, Reporting, Compliance, Management, Nigeria,

Caselets Summary

The roles of compliance managers, risk managers, internal audit managers and qualityassurance managers, although distinct, are inter-related. They are all critical to thestrategic management of the organization, generally reporting to the Board or ChiefExecutive or a Board Committee. They are neither line nor the typical supportfunction, although internal audit is often viewed as a Finance function. Thesefunctions provide a system wide standard setting and assurance management role inthe overall strategic management of the organization. More importantly, the work ofeach function dovetails into the other. Therefore, a high level of collaboration isessential in driving synergies between them. Open communication between theseunits is essential. These functions all utilize the methodology of standard setting,evaluation and reporting. Efforts should be made to interlink their work in order toform a more detailed composite picture of strategic opportunities and risks.One other function that must be brought into the framework of collaborationhighlighted above is the legal function. Legal risk is a part of operational risk, and allthe roles mentioned above are essential to corporate governance management andreporting, usually a remit of the legal or company secretarial function. Indeed, sincefailures in compliance, risk management, internal audit and quality assurancegenerally directly translate to often grave and potentially devastating legal liability,the legal function needs to be part of the proactive process of managing those keyareas, and in turn kept on its toes by those other functions.Steven Covey famously said Management works in the system leadership works onthe system.1 Since the roles of compliance, risk, internal audit, quality assurance andcompany secretarial/legal functions are focused on the system it is imperative for thosewho occupy those roles to operate as leaders, not merely as managers. Compliancemanagers must work in close collaboration with the other roles mentioned and mustoperate as leaders, willing and able to be strategic and to make the tough ethical callsrequired of strategic leaders in the organization.

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