Is A “Chief Compliance Officer” The Hottest New Role In Startups?

Whilst working in compliance may not seem like the most glamorous role, in recent years, its importance has been promoted to the C-suite.

As regulations across many parts of the world tighten and customers continuously place trust in the technologies that they use,  the role of the Chief Compliance Officer has become more than just a ‘nice to have’, it has become an essential part of most businesses.

Across sectors like fintech, AI, healthtech and cybersecurity, the Chief Compliance Officer (CCO) has become one of the most in-demand hires in the C-suite.

So, why is the CCO becoming so important?

Why Compliance Has Become A Priority For Startups

Almost 10 years ago, startups were more focused on building than they were on compliance. The goal was to grow fast and deal with regulations later on. Today however, compliance is something that can’t be ignored.

Data needs to be protected and AI has to be regulated both ethically and systematically. When it comes to cyberattacks, the results can be catastrophic for businesses both financially and reputationally.

For investors and customers alike, trust has become a real currency, and making sure a company is taking compliance seriously is a huge part of that.

The person that heads that up? The CCO. But a modern CCO isn’t just someone who ticks regulatory boxes, they help a company expand safely, ethically and in a way that protects them legally, financially and reputationally.

What Does A Chief Compliance Officer Do?

A CCO’s role usually involves a mix of law, risk assessment, ethics and strategy. They would normally be responsible for:

• Making sure the business is up to date with the latest compliance laws.
• Keeping the business legally compliant in line with new regulations.
• Advising senior leadership of any risks or considerations.
• Keeping tech teams focused on building with compliance in mind.

The job normally requires a mix of technical know-how with both commercial and legal knowledge. But most importantly, the CCO will be tasked with making sure a company can scale, without compromising on its compliance.

Why Startups Need CCOs So Early

A CCO is becoming more important as an early hire in a business. This is for a number of reasons.

First of all, regulations are changing, and fast. From AI laws to data privacy, sustainability and payment laws, the rules are changing every year and startups need to keep on top of them.

CCOs also need to solidify themselves in a business early. Compliance can be seen as a blocker, but having a person embedded early in the team means other people are more likely to listen, and tools will be built with the right frameworks from the start.

But most importantly, cybersecurity is a real risk that businesses can’t afford to take. A CCO must make sure that any data leaks are handled compliantly, if not only to build trust, but also to prevent any legal implications for the business.

CCOs  From Banking To Startups

One of the most interesting parts of the new startup CCO role is that it is drawing in professionals from the corporate world into sectors like tech and fintech.

One recent example of this is Nita Patel, who was employed as Wise’s CCO following senior roles at Deutsche Bank, Credit Suisse, Goldman Sachs, Nomura and Bear Stearns. Wise now processes global cross-border payments for millions of people, and compliance leadership has become central to its growth.

As fintech, AI and SaaS companies grow – will they become more appealing to compliance talent than global banks?

So, Is The CCO The Hottest New Startup Role?

In a lot of sectors, yes! And for good reason.

A CCO can help a business grow and scale without having to compromise on compliance. And in a world where trust is important for customers, investors and other stakeholders, the CCO role may not be the most glamorous, but in many sectors, it’s definitely one of the most important.