5.3.2 - Access to governing body and top management

How to Answer the Question

To effectively respond to how the compliance function maintains access to the governing body and top management, emphasize the following:

-   Structural Placement:   Describe how the compliance function is positioned within the organizational hierarchy to ensure direct lines of communication with senior leadership.

-   Formal Mechanisms:   Explain the formal mechanisms in place that facilitate immediate communication, such as regular scheduled meetings, direct reporting lines, or a mandated inclusion in strategic meetings.

For specific examples and detailed guidelines, refer to the [Agence Française Anticorruption](https://www.agence-francaise-anticorruption.gouv.fr).

Why It's Important

Understanding the accessibility of the compliance function to top management and the governing body is vital because:

-   Timely Issue Resolution:   Direct access ensures that any issues can be addressed promptly, preventing minor concerns from escalating.

-   Enhanced Accountability:   It reinforces the role of top management in governance and their direct involvement in compliance issues.

-   Clear Communication Paths:   Establishes clear and unobstructed communication channels for reporting and advice, crucial for effective compliance management.

Insights can also be found in the resources from the [OECD](https://www.oecd.org) regarding corporate governance and compliance.

Examples

-   Example A:  

 -   Context:   In a multinational corporation, the Chief Compliance Officer (CCO) reports directly to the CEO and has an open invitation to attend all board meetings.

 -   Action:   This arrangement ensures that the CCO can raise issues directly at the highest levels without bureaucratic delays.

 -   Outcome:   Effective and immediate actions are taken on compliance matters, enhancing the organization's ability to manage risks promptly.

 Learn more about this structure from the [International Anti-Corruption Academy’s guidelines](https://www.iaca.int).

-   Example B:  

 -   Context:   A technology startup implements a compliance portal that is directly accessible to the governance board and the CEO.

 -   Action:   The portal allows the compliance team to post updates and issues in real-time, which are immediately accessible to the top management.

 -   Outcome:   Quick decision-making and transparency in handling compliance issues, fostering a culture of open communication and swift responsiveness.

Additional information on digital tools for compliance can be found on [Ethisphere’s platform](https://ethisphere.com).