What is the function of a Compliance Committee?

The function of a Compliance Committee is to oversee the implementation and effectiveness of compliance programs and policies. This committee is critical in ensuring that an organization adheres to relevant laws and regulations, internal policies, and ethical standards. The primary responsibility of the Compliance Committee includes assessing compliance risks, monitoring the execution of compliance initiatives, and addressing any issues that arise in the context of compliance. This ongoing oversight helps to establish a culture of compliance within the organization, ultimately mitigating risks and ensuring that the organization operates within the legal and ethical frameworks that govern its activities.

In contrast to this function, developing new profit strategies is more aligned with strategic management rather than compliance oversight. Handling customer service complaints pertains to customer relations and operational management, which is outside the scope of compliance. Managing financial assets relates to financial management and does not directly reflect the objectives of ensuring compliance with regulations and policies. Thus, the role of the Compliance Committee is critical in maintaining an organization’s integrity and accountability.