CFO Slice

Compliance experts are urging organizations to rethink traditional risk management strategies, arguing that compliance officers should act more like coaches who encourage instinctive good behavior rather than relying solely on policies, controls, and annual training. Gartner researchers said only one-third of business leaders currently feel confident managing risk and compliance, highlighting the shortcomings of conventional approaches in today’s fast-changing regulatory environment. Their study argues that companies should build “risk reflex,” a culture where employees naturally recognize and respond to risks. One recommendation is integrating compliance directly into daily operations by embedding controls and approval checkpoints into routine workflows and business systems, making it harder for employees to bypass proper procedures. The authors also recommend fostering stronger risk ownership through more meaningful dialogue. Instead of asking whether teams followed compliance rules, leaders should encourage employees to think critically about potential business consequences and risks, helping shift accountability beyond legal and compliance departments.