Why an external compliance officer?

As initially described, the CCO might have toengage in confrontations with colleagues and his superiors. This is obviously made difficult if he has had positive and negative experiences in the past with other people in the company. An external CO does have to jump this hurdle, he enters the company objectively and impartially. He is therefore able to take decisions and make recommendations, which, in the case of doubt are also unpopular, much more easily, particularly in the case of infringements committed by members of the management.

If it comes to a court hearing, in civil or criminal law, the argumentation of a person outside the company will be given more credit that a hearing than an employee subject to the underlying assumption that he/he wants to keep his/her job.

If consideration is given to awarding this position in-house because a CCO as employee costs just as much as an outsider, it is oftenoverseen here that this does not concern an individual person but a whole department must be maintained to do the groundwork for the CCO. In the medium-size business we are talking about around 11,000 rules*. These costs are not incurred by the external CO.

The external CO should be appointed for a certain period to protect his position and maintain his independence, unless he himself is confronted with legally relevant objections. His contract extension should be agreed in sufficient time before termination of the contract.