The inspiration for this posting is based on a close personal friend that is living through a return to office experience that has them questioning their relationship with their current employer. They have been in the office for most of the post pandemic shut down, and as a reward they were given a daily dedicated workspace by their manager, rather than the current ‘hot desking’ trend. Then out of the blue, HR over rode the managers decision and cancelled the reward. Hence, the company lost a bucket of trust that the manager had been building in drops over time.
Which easily translates to the risk and compliance managers.
Every compliance officer has had the experience of finding out about a problem too late. Not because no one knew. Because the person who knew didn’t feel safe enough to say something.
Maybe an advisor noticed something off in a colleague’s trades but didn’t want to be seen as a troublemaker. Maybe a branch manager spotted a pattern but hoped it would resolve itself.
These aren’t failures of knowledge. They’re failures of trust.
I’ve come to think of every interaction between a leader and someone raising a concern as a deposit or a withdrawal from a trust account. Handled well, it strengthens the culture. Handled poorly, it damages it — and trust is slow to build and fast to lose.
You can spend years developing a culture where people feel safe speaking up. One badly handled situation can set you back significantly.
That’s not a reason to be paralyzed. It’s a reason to be intentional. The leaders who build the strongest cultures aren’t the ones who never make mistakes. They’re the ones who, when they handle a concern poorly, go back, acknowledge it, and do better next time.
Trust is built in drops and lost in buckets. Protect every drop — especially when it would be easier to let one slide.
Why Post
The idea behind postings on this platform is to ask questions. Also, hopefully provide ideas, concepts or thoughts that highlight the challenges facing risk and compliance managers in the corporate governance structure. These postings are based on my personal experience, the experiences of others, and developing my understanding of the many leadership challenges, through publications and literature.
It’s my desire to help close the perceived negative gaps between corporate governance and risk/compliance management. There are ways and means to enhance the relationship, which I’ve focused on for several years. Direct message me for additional information on how to create a collaborative governance environment.