How To Become a Compliance Officer in 5 Steps

Updated April 28, 2024

A compliance officer needs to have an understanding of complex rules, regulations, and documentation to ensure their organizations comply with all current laws and regulations. Working as a type of internal auditor, a compliance officer works to ensure the organization follows the laws and ethics within its industry. Understanding how to become a compliance officer can prepare you to follow this exciting career path. In this article, we discuss the role and responsibilities of a compliance officer, the skills, salary, and career outlook for the position, along with the five steps to becoming an excellent compliance officer.

What does a compliance officer do?

A compliance officer works for an organization to monitor and evaluate the company's compliance with external industry laws and regulations and internal policies and procedures. As an employee of the company, they ensure that all business practices are ethical and legal. A compliance officer works with the organization's management and employees to identify compliance risks and then create policies and implement plans to ensure adherence to regulations.A compliance officer is a broad job description found in many industries. For example, they typically work within healthcare, financial institutions, petroleum companies, and government agencies. However, because of the broad range of sectors, compliance officers may specialize in a particular area and have a more detailed title, such as:

Licensing inspector or officer
Government property investigator or officer
Environmental compliance inspector
Regulatory affairs officer
Equal opportunity representative or officer

How to become a compliance officer

There are several steps you can follow when learning how to become a compliance officer, including:

1. Consider an industry specialization

While working through your education, consider an industry you want to specialize in, such as environmental, healthcare, financial, or manufacturing. Many compliance officer positions require specialized or industry-specific training and expertise to fulfill the position's duties and responsibilities. Identifying your area of interest early on your academic path can ensure you take the most appropriate courses in your degree program.

2. Complete your bachelor's degree program

Most organizations require a compliance officer candidate to have completed a bachelor's degree program in their industry area. For example, a compliance officer employed by a bank or other financial institution requires a bachelor's degree in finance, business administration, or economics. A regulatory compliance officer working in the petroleum industry may require a degree in petroleum engineering, chemical engineering, or business administration. This shows the importance of identifying your area of interest early in your academic studies.Related: How To List Education on Your Resume (With Examples)

3. Gain work experience through internships

While completing your bachelor's degree, applying for summer internships provides you with hands-on experience in the real world. With an internship, you work next to an experienced professional who shows you what the daily life of a compliance officer is like. Under their direct supervision, you perform various job tasks and implement your knowledge within a formal work environment. Many organizations offer paid internship positions to students and use the program to recruit new talent into their company after graduation. An internship also allows you to try out various types of situations without a permanent commitment.

4. Apply for a junior compliance officer position

After graduating, you can apply for a junior position within your area of specialization. Depending on the industry, you may require compliance officer certification from an industry association that needs a specific amount of work experience hours before being eligible. Often, working in a junior role provides you with valuable hands-on experience while perfecting your skills and abilities in your industry.

5. Get certified

Many industries require compliance officers to earn certification to show their level of professionalism, expertise, and ethics. Each industry has its own regulations about certification, and eligibility requirements may include hours or years of work experience, academic training, professional recommendations, or standardized testing. For example, financial regulatory compliance officers need specific registrations with their province of employment and various financial-specific training and testing.Related: A Guide To Writing a Cover Letter for an Internship

Duties and responsibilities

There are several duties and responsibilities that compliance officers need to master to succeed in their role, including unique, industry-specific tasks. Some duties are standard across every industry for this role. Here are some of the general primary responsibilities of any compliance officer:

Monitor external regulatory compliance

One of a compliance officer's primary duties is to monitor an organization's compliance with external regulations and laws. Their job is to ensure their company follows all policies and procedures of industry regulations and standards. In addition, a compliance officer identifies areas of non-compliance and creates company policies to ensure management and employees understand the importance of complying. Being in breach of compliance can result in financial fines, a revoked licence, or negative publicity.

Manage compliance of internal systems

While a compliance officer makes sure a business operates within the legal, ethical, and regulatory confines of their industry, they also ensure that a company functions within a documented system internally. They manage the policies and procedures of an organization, ensuring that management and employees are aware of documentation and standard operating systems. In addition, a compliance officer maintains regulatory documents in-house, assists in preparing for audits, and offers suggestions for improvements to ensure the company remains compliant.

Communication with management

A compliance officer maintains open communication with the organization's management. As part of their position, they provide counsel and advice to the leadership team on minimizing risks and improving regulatory compliance. Acting in the company's best interest, a compliance officer must maintain an unbiased view of the business practices and remain neutral in their judgements and analysis. Communication with management happens through regular face-to-face meetings, detailed reports, and project plans.

Identify potential compliance risks

Another critical duty of a compliance officer is to assess a company's business practices and identify potential compliance risks. Through risk assessments and internal audit programs, a compliance officer looks at the organization's full scope of policies and procedures. They work to uncover areas that don't conform to external laws and regulations, leaving the company susceptible to penalties or fines. A compliance officer also maintains and updates internal documentation, ensuring that the company complies with its own standards of operation.

Educating and training company staff

A compliance officer works with management and human resources to educate and train employees on the importance of regulatory and procedural compliance. They develop training program modules for staff learning a specific job so that new employees understand the documentation and requirements of the position. A compliance officer can implement a company-wide education program for new or updated internal policies and procedures or ongoing updates to industry regulations. For example, a compliance officer at a manufacturing company may work closely with the health and safety officer to develop a training program for safety requirements from the provincial or federal government.Related: Employee Handbook: Definition, Importance, and Sections

Relevant skills

A competent compliance officer needs a combination of skills to perform the duties and responsibilities of their position. Some of these skills include:

analytical skills
attention to details
business knowledge
communication skills
critical thinking
organizational skills
problem-solving skills
regulatory understanding
risk assessment abilities
understanding of security and vulnerability risks

Working conditions

The working conditions of a compliance officer vary based on the industry they represent and can range anywhere from an office environment to the field on a construction site. For example, a corporate regulatory compliance officer typically works in an office setting with a relatively consistent full-time work schedule. A licensing compliance officer working for a government agency, in contrast, may need to work evenings and weekends to inspect and evaluate food establishments and restaurants. Regardless of the work environment, a compliance officer works with a significant amount of documentation, regulations, and policies.Related: What Is A Code Of Conduct (Definition And Examples)

Average salary and job outlook

The average salary of a compliance officer varies depending on geographic location, company, skills, experience, and industry. According to Indeed Salaries, the national average salary for a compliance officer is $65,787 per year. The career path of a compliance officer looks vital for the next several years. According to the Government of Canada Job Bank, the availability of compliance officer jobs over the next three years looks fair to good across the country and a ten-year outlook looks balanced between job opportunities and job seekers.Now that we've discussed the role and responsibilities of a compliance officer along with five steps to become a compliance officer, you'll be better prepared to pursue this career path.Please note that none of the companies, institutions or organizations mentioned in this article are affiliated with Indeed.Salary figures reflect data listed on Indeed Salaries at time of writing. Salaries‌ ‌may‌ ‌‌vary‌‌ ‌depending‌ ‌on‌ ‌the‌ ‌hiring‌ ‌organization‌ ‌and‌ ‌a‌ ‌candidate's‌ ‌experience,‌ ‌academic‌ background‌, ‌and‌ ‌location.‌