Money, size, industry: Multiple factors at play in setting compliance reporting lines

Org structure

Compliance teams most often report to their firm’s legal department, Compliance Week’s “Inside the Mind of the CCO” survey found. However, heavily regulated companies and those with fewer employees are more likely to have compliance directly under the chief executive officer.

Of the 322 total respondents to the survey, 39 percent said their compliance department reported to legal. This was followed by reporting to the CEO (34 percent); a board committee (21 percent); the board itself (17 percent); or the chief operating officer, chief financial officer, or chief risk officer (9 percent each). Multiple responses were allowed.

Amy Matsuo, principal and national leader, compliance transformation and regulatory insights at KPMG, said there is no one best reporting structure.

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