What Is a Compliance Officer?

Compliance officers are well-versed in the laws and policies that govern an organization’s operations. They use their expertise to help the organization adhere to regulations and avoid significant fines and other penalties.

Those who are considering pursuing a career as a compliance officer can benefit from learning more about what a compliance officer is and the requirements to become one. Earning a Master of Public Administration (MPA) degree can prepare individuals for compliance officer roles in government agencies and nonprofit organizations.

What Does a Compliance Officer Do?

Compliance officers help maintain an organization’s ethical and legal integrity by ensuring it operates within the boundaries of all applicable federal, state and local laws and regulations and that it abides by its own policies. For example, a compliance officer working for a hospital monitors the processes involved in collecting, storing, analyzing and transferring patient data to ensure they align with the requirements of the Health Insurance Portability and Accountability Act, or HIPAA, a federal law focused on safeguarding patients’ personal health information.

What Is a Compliance Officer’s Work Environment?

Most compliance officers work for organizations that operate in industries with complex and strict legal requirements. The types of organizations that most commonly employ compliance officers are those in the health care, finance, government, real estate, logistics and supply chain management, oil and gas, and pharmaceutical industries.

Compliance Officer Duties and Responsibilities

Compliance officers have a wide range of duties and responsibilities that can vary from one industry or employer to the next. Despite this, all compliance officers share the same overarching mandate — to ensure their organization’s processes align with all relevant laws, regulations and internal policies.

Compliance officers’ duties and responsibilities often include the following:

• Developing and managing compliance frameworks that include guidelines, policies and controls to ensure their employer consistently adheres to industry standards and applicable regulations
• Conducting risk assessments to find and fix potential weak points in the organization’s compliance policies
• Staying up to date with the latest laws and regulations that impact the organization’s industry
• Proactively addressing challenges that may arise with newly implemented regulations
• Administering compliance training and awareness programs
• Investigating compliance incidents or reports of unethical conduct and recommending appropriate responses
• Monitoring current compliance programs to look for ways to enhance and improve them
• Serving as a liaison between the organization and regulatory agencies and inspectors
• Building and maintaining a solid culture of compliance throughout every department in the organization

Education and Experience Requirements for Compliance Officers

The education and experience requirements for compliance officer positions may differ depending on the employer. In many cases, employers prefer to hire candidates with credentials that demonstrate their knowledge and ability.

Education

While a bachelor’s degree is generally the minimum education required to work as a compliance officer, many organizations prefer to hire candidates with a master’s degree. Many aspiring compliance officers pursue their bachelor’s degrees in the field they prefer to work in, such as finance, business, health care or public administration, then go on to earn a master’s degree, such as a Master of Public Administration (MPA).

Experience

Organizations look to hire compliance officers who have three to five years of work experience in their chosen field. Some individuals work in an entry-level role in an industry they’re interested in while they pursue their master’s degree. Gaining work experience can be a valuable opportunity for aspiring compliance officers to familiarize themselves with the regulatory landscape in a particular industry.

Certification

Compliance officers who want to be more competitive in the job market may choose to pursue one or more optional certifications. Compliance certifications are highly specialized, which means aspiring compliance officers can pursue one that is closely related to their chosen industry and role.

Examples of popular compliance certifications include the following:

• Certified Regulatory Compliance Manager (CRCM): The CRCM credential is ideal for compliance officers working in finance, and it is offered by the American Bankers’ Association. It is only available after gaining experience and expertise. Many new compliance officers consider earning the CRCM designation a major career goal.
• Certified in Healthcare Compliance (CHC): Those who prefer to work in health care may pursue the CHC credential offered by the Health Care Compliance Association. It covers a wide range of activities within the health care industry and demonstrates knowledge and expertise in the associated regulatory processes.
• Certified Information Privacy Professional (CIPP): Compliance officers in the information technology field often pursue the CIPP credential offered by the International Association of Privacy Professionals to demonstrate their knowledge of data privacy practices, laws and regulations.
• Certified Compliance and Ethics Professional (CCEP): The CCEP certification offered by the Society of Corporate Compliance and Ethics’ Compliance Certification Board is for compliance professionals across industries. The credential enhances compliance officers’ credibility.

Compliance Officer Salary

The median annual compliance officer salary is around $77,300, according to May 2024 data from the compensation website Payscale. Entry-level compliance officers have a median salary of about $57,000 a year, while those with 20 or more years of experience have a median salary of about $99,0000.

Build Better and More Ethical Organizations as a Compliance Officer

Understanding what a compliance officer is and why the role is likely to become even more important to organizations in the future is helpful for those looking to choose a fulfilling career path. From health care facilities to government agencies to telecommunications firms, many types of employers seek out professionals interested in building more ethical organizations.

Augusta University Online’s Master of Public Administration (MPA) degree program can prepare you for a compliance officer career in a world facing unprecedented challenges. Learn more about how you can gain the integrity, public service knowledge and values required to work toward making society at large more equitable by enrolling in AU Online’s MPA program.

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Sources:
American Bankers Association, Certified Regulatory Compliance Manage (CRCM)
Captain Compliance, “What Is a Compliance Officer? Understanding Compliance Roles for Your Business”
Health Care Compliance Association, Certified in Healthcare Compliance (CHC)
The HIPAA Journal, “What Is HIPAA?”
Indeed, “15 Top Compliance Certifications to Have on Your Resume”
Indeed, “How to Become a Compliance Officer (With Steps)”
Indeed, What Does a Compliance Officer Do?
International Association of Privacy Professionals, CIPP Certification
Investopedia, “Compliance Officer: Definition, Job Duties, and How to Become One”
Payscale, Average Compliance Officer Salary
Society of Corporate Compliance and Ethics, Certified Compliance and Ethics Professional (CCEP)