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Compliance in an economic downturn

Tom Fox | December 14, 2017

Many chief compliance officers and compliance practitioners struggle with metrics to demonstrate revenue generation. Most of the time, such functions are simply viewed as non-revenue-generating cost drags on business. This may lead to compliance functions being severely reduced in this downturn. I believe, however, such cuts would be far from short-sighted; they would actually cost energy companies far more in the short and long term.

In an economic downturn, I see two increasing compliance risks for companies. The first is that companies will attempt to reduce their costs by cutting their compliance personnel. A tangent but equally important component of this will be that companies that do not invest the monies needed to beef up their oversight through monitoring or other mechanisms are setting themselves up for serious compliance failures. Moreover, what will be the pressure on the business folks of such companies to “get the deal done”? Further, if there is a 10 percent...

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