Compliance has come a long way since its early days, when it was primarily seen as a box-ticking exercise. Today, it is a critical aspect of business operations that can significantly impact an organization’s reputation, finances, and survival.
The governing bodies and regulatory agencies continue to expand their reach, with more stringent laws and regulations being put in place. So the legal complexities and risks associated with compliance have also increased.
According to Navex Global’s 2023 Definitive Risk & Compliance Benchmark Report 19% of organizations reported receiving legal or regulatory action from a governing body related to compliance issues. So the companies are hiring more compliance professionals to mitigate the risks and ensure adherence to laws and regulations.
Let’s see what the top industries are hiring compliance professionals.
What is the Role of a Legal Compliance Professional?
When you think of a legal compliance professional, you may picture someone sitting in a law office or courtroom. However, the role of a compliance professional extends far beyond just working with lawyers and dealing with legal issues.
Compliance professionals are responsible for developing and implementing policies, procedures, and internal controls to ensure a company operates within legal boundaries. They also monitor and assess potential risks and develop strategies to mitigate them.
Here are some areas of expertise that a compliance professional may have:
- Ethics and code of conduct
- Anti-corruption and bribery laws
- Data privacy and protection regulations
- Employment laws and regulations
- Environmental regulations
- Financial reporting and accounting standards
- Intellectual property rights
- Occupational health and safety regulations
- Export and import laws
- Consumer protection and advertising laws
The responsibilities of a compliance professional may vary depending on the industry and company they work for. Some companies may require their compliance professionals to have a general understanding of all areas listed above. Others may have specific compliance professionals dedicated to each area. Regardless, a compliance professional must stay updated on any changes or updates to regulations and laws that pertain to their industry.
Top Industries Hiring Legal Compliance Professionals
As the demand for regulatory compliance continues to grow, industries across multiple sectors are hiring legal compliance professionals.
Financial services industry
The financial services industry is among the top industries hiring legal compliance professionals. The finance sector includes banks, credit unions, insurance companies, investment firms, and other financial institutions. The fintech industry is at the forefront of this trend, with the rise of digital banking and online lending platforms requiring strict compliance with financial regulations.
Financial institutions are subject to various federal and state laws, such as the Bank Secrecy Act, Dodd-Frank Act, and Sarbanes-Oxley Act. The Federal Reserve, Securities and Exchange Commission, and Consumer Financial Protection Bureau regulate them.
With the increasing use of technology and data in financial services, regulators also pay close attention to cybersecurity and privacy issues. The Gramm-Leach-Bliley Act requires financial institutions to protect customer information and notify them of security breaches.
When individuals or organizations need legal compliance, they turn to legal compliance professionals. These professionals help ensure that the company or individual follows all relevant laws and regulations, avoiding legal risks and penalties.
Technology industry and legal compliance
Technology is one of the most dynamic and fast-paced industries, often setting trends and shaping our lives. As technology evolves rapidly, so do the laws and regulations that govern it. This makes legal compliance a critical aspect for companies operating in this space.
From data privacy to cybersecurity, there are several legal requirements that tech companies must adhere to to protect their customers and maintain their reputation. Failure to comply with these regulations can result in expensive fines, damage to the company’s brand image, and even legal action.
One of the most talked-about issues in the tech industry is data privacy. With the increasing amount of personal data being collected and stored by tech companies, there is a growing concern about how this information is used and protected. Governments worldwide have implemented data privacy laws, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States.
These laws aim to give individuals more control over their data and hold companies accountable for how they handle it. Legal compliance professionals in the tech industry ensure that their company follows these laws and adequately protects user data.
Healthcare industry
Healthcare is one of the most highly regulated industries in terms of legal compliance. This is due to the sensitive nature of medical information and the potential harm from mishandling it. In addition to data privacy laws, healthcare companies must comply with HIPAA (Health Insurance Portability and Accountability Act) in the United States and GDPR (General Data Protection Regulation) in the European Union. These regulations set strict standards for collecting, storing, and sharing patient data.
The healthcare industry faces unique challenges when it comes to cybersecurity threats. Healthcare organizations are a prime target for cybercriminals due to the large amount of valuable personal and medical information they possess. A data breach in the healthcare sector puts patients’ sensitive information at risk, disrupts critical services, and can lead to severe legal consequences.
The legal compliance professionals are in high demand, and healthcare organizations are actively seeking their services to ensure they meet industry regulations and protect patient data. These professionals work closely with IT teams to develop and implement cybersecurity policies that comply with federal laws. They also conduct regular risk assessments and audits to identify and address potential vulnerabilities before they can be exploited.
Government sector
Government agencies heavily rely on legal compliance professionals. These professionals are responsible for ensuring that government organizations comply with all applicable laws and regulations and internal policies and procedures. They work closely with agencies to develop compliance programs, provide training and education to employees, and conduct regular audits to ensure adherence to standards.
Legislation and regulations about government organizations are often complex. Legal compliance professionals can assist in interpreting and understanding these laws and regulations. They can also help develop policies and procedures that align with these requirements.
In addition to monitoring and enforcing legal compliance, government organizations must also adhere to ethical standards. These standards are often outlined in a code of ethics or conduct. The purpose of these codes is to guide employees on how to behave and make ethical decisions.
Legal compliance professionals can also help identify and mitigate potential conflicts of interest within government organizations. This involves understanding and enforcing rules around accepting gifts, outside employment, and other instances where an employee’s interests may conflict with their duties.
Other Roles of Legal Compliance Professionals
In addition to the financial sector, tech, health care, and government organizations, legal compliance professionals also play a role in other industries and sectors.
Non-profit organizations, educational institutions, and media companies are examples of other industries that require legal compliance professionals. Their responsibilities are based on the industry and the organization’s specific needs, but their core function remains the same – to ensure that the organization is operating within legal boundaries.
Global business and international trade have also increased demand for legal compliance professionals. Many organizations now have operations in multiple countries, making it necessary to comply with various laws and regulations in each location. A strong legal compliance team can ensure the organization follows all applicable laws and regulations across different jurisdictions.
Conclusion
In conclusion, the demand for legal compliance professionals is expected to rise in the coming years due to increasing regulatory complexity, business globalization, and heightened corporate responsibility awareness. As companies face more pressure to adhere to laws and regulations, the need for skilled professionals who can effectively manage legal compliance will grow.
Organizations across various industries are likely to hire legal compliance professionals in 2025. However, some sectors may have a higher demand than others. Financial institutions, tech companies, and healthcare organizations are expected to be the top industries requiring legal compliance professionals.
So, if you are considering a career in legal compliance, there will likely be plenty of job opportunities to choose from in the coming years. Furthermore, the demand for legal compliance professionals is expected to continue growing as companies increasingly prioritize ethical and lawful business practices.