What are characteristics of hybrid compliance functions?

Hybrid compliance functions are designed to operate across various business lines, which allows them to effectively manage compliance initiatives that may differ from one line of business to another within the same organization. This characteristic enables organizations to adopt a more integrated approach to compliance, addressing not only regulatory requirements but also internal policies that may vary by business unit.

By having a compliance function that spans multiple areas, organizations can leverage best practices from different sectors, promote a culture of compliance throughout the entire business, and ensure that compliance is not siloed into discrete departments. This reflects the complexity of today’s regulatory environment, which often requires a holistic view of compliance that encompasses various operations and functions within a business.

In contrast, the other options suggest limitations that do not align with the concept of hybrid compliance. For example, managing global compliance standards exclusively would restrict a compliance function to only global perspectives without considering local variations. Being solely based in the country of operation would ignore the nuances of multinational operations where compliance may touch on various jurisdictions. Lastly, representing only formal compliance roles would lack the necessary flexibility to incorporate various business needs and informal practices that can also influence compliance effectiveness.