Strengthening Corporate Governance: The Critical Role of Compliance Teams

In an ever-changing regulatory environment, corporate compliance has moved beyond a back-office function to become a full-fledged business imperative. Staying ahead of evolving regulations, mitigating risk, and ensuring internal accountability can mean the difference between growth and costly disruption. 

If you’ve ever:

• Struggled to track expenses efficiently
• Spent too much time managing tax documents
• Uncovered non-compliant or questionable spend 
• Wondered whether certain expenses were legitimate

You’re not alone. 77% of business leaders say detecting and managing risk is at an all-time high and nearly three-quarters worry they’re falling behind. A dedicated compliance team can help bridge that gap and protect your organization from reputational damage and legal and financial consequences.

What Is a Compliance Team?

Think of a compliance team as your organization’s safeguard against legal, financial, and ethical risks. This critical team ensures adherence to national and international laws, industry regulations, and internal policies. But their role goes far beyond policing behavior. Compliance teams proactively identify vulnerabilities, foster ethical business practices, and help not just leaders, but the entire company, make smarter decisions.

Key Roles on a Compliance Team

Depending on the size of your organization, a compliance team may include:

• Compliance officers – Oversee adherence to regulations and internal policies
• Auditors – Conduct internal reviews and flag potential risks
• Legal advisors – Provide counsel on regulatory and legal matters
• Analysts – Surface actionable insights through data and reporting

Together, these experts form the backbone of a healthy governance structure.

Why Compliance is Foundational to Corporate Governance

Corporate governance provides the framework for how your organization operates, ethically, strategically, and transparently. A proactive compliance function supports this foundation in several critical ways:

1. Fostering Integrity Across the Organization

An empowered compliance team helps embed a culture of ethics, transparency, and accountability. When compliance is part of the day-to-day business rhythm, employees are more likely to act in alignment with company values and expectations.

2. Reducing Financial and Legal Risks

Regulatory missteps can result in heavy fines, reputational damage, and operational disruptions. For example, according to The Association of Certified Fraud Examiners (ACFE), organizations lose up to 5% of annual revenue to fraud, often due to misreported expenses or misused assets. A vigilant and proactive compliance team can help identify red flags early and take swift action.

3. Supporting Smarter, More Confident Decisions 

When leaders have a clear view of their legal and ethical obligations, they can make decisions that reduce risk and enhance long-term value. Compliance teams provide the policies, processes, and visibility needed to operate with confidence—even in a complex regulatory environment.

Key Responsibilities of a Compliance Team

A modern compliance team wears many hats. Their core responsibilities include:

1. Regulatory Compliance

Monitoring and enforcing compliance with applicable laws, standards, and internal policies—from anti-corruption to financial reporting to data privacy.

2. Policy Development and Implementation

Creating clear, accessible policies that guide employee behavior.  These policies provide guidance on acceptable practices and set the standards for employee behavior.

Policies can range from financial oversight to corporate travel policies. For instance, a well-defined travel and expense policy outlines:

• Approved booking methods and preferred vendors
• Budget limits for airfare, lodging, and transportation
• Rules for business and leisure (bleisure) travel 
• Expense reporting and reimbursement timelines

3. Risk Assessment and Mitigation

Conducting internal audits and compliance reviews to identify risks before they escalate—and using those findings to improve processes and controls.

4. Monitoring and Reporting

Tracking internal compliance and third-party adherence (e.g., subcontractors or suppliers). Many industries—especially regulated sectors—require regular reporting to regulators or executive stakeholders.

5. Employee Training and Awareness

Helping employees understand what’s expected—and why. Well-designed training programs are essential to translating written policies into everyday practice.

6. Incident Response

When issues arise, compliance teams investigate, take corrective action, and put safeguards in place to prevent recurrence.

Common Challenges for Compliance Teams Face

Modern compliance leaders face no shortage of hurdles, including:

• Regulatory complexity – Laws change frequently, requiring continuous monitoring.
• Resource constraints – Smaller teams often juggle multiple responsibilities.
• Resistance to change – Employees may view compliance measures as burdensome.

The most effective compliance teams don’t just enforce policies — they embed smarter, more efficient processes into everyday operations.

Strengthening Compliance with SAP Concur Solutions

Manual compliance tracking and disconnected systems are no match for today’s demands. SAP Concur helps organizations strengthen compliance and governance by integrating intelligent tools into everyday business processes.

How SAP Concur Supports Compliance Teams

• Automated Expense Tracking – Flags non-compliant or suspicious transactions in real time
• Customizable Auditing Tools – Streamlines audit workflows with configurable checks and automation 
• Real-Time Reporting – Offers deep visibility into spending trends, helping surface fraud and reduce errors
• Integrated Workflows – Connects expense, travel, and vendor systems to ensure consistent policy enforcement

Elevate Compliance from Burden to Business Advantage

When done right, compliance isn’t a bottleneck — it’s a competitive edge. By giving your compliance team the tools they need to operate efficiently and strategically, you can improve governance, reduce risk, and build a more resilient organization.

Want to see how organizations are using intelligent spend solutions to drive compliance? Explore our eBook: Turning Compliance Requirements into Business Opportunities