5 Things for Compliance Professionals to Consider When Budgeting and Planning for 2021
For most of us, 2020 did not turn out exactly as planned, but it did create challenges and opportunities that will likely have an impact on how business operates for years to come. In times of rapid change, it is important to that your organization changes together. This year, CCOs need to be extra diligent in participating in the budget and planning process. Here are a few tips to make this year’s process a success:
- Make it a Planning and Budget process, not a Budget and Planning process. Get with the leaders in your organization to discuss their strategic plan as it relates to potential changes in strategies for remote work, product offerings, client engagement practices, and clearing and custody relationships. Align your plan to theirs before starting to think about what resources you need to accomplish those plans.
- Recognize the need for flexibility around timing. We are in a pandemic and the length of time and severity of the impact is not fully in our control. Build in realistic contingencies for COVID-related impacts.
- Be cautious about making major strategic changes in your environment, except to gain more flexibility and faster change processes. Avoid locking your firm into a specific way of doing things. The election results will lead to regulatory changes in staffing at the federal level and perhaps in oversite committees. That will take some time to unfold and for us to see what the future holds. The world will never change this slowly again so be ready for change – it’s going to happen.
- Hold some funds back to respond to emerging risks and opportunities.
- Don’t forget to budget the basics. Your compliance program needs routine care and feeding and that can cost time and money. If you are struggling to keep up, consider budgeting at least some time to make sure you have optimized your program for not just effectiveness, but efficiency.
Oyster Consulting offers free resources to help you achieve success. Listen to our podcasts, read our blogs, or follow us on LinkedIn to hear from our experienced industry practitioners about ways to protect, run and grow your organization. If you need specific advice for your firm, please call (804) 965-5400 or click here and we will be happy to assist you.