How to avoid under scoping a senior Risk & Compliance role
How to ensure your senior risk hire has the right remit, resources, and authority to be successful.
The Short Answer
Under scoping happens when a firm hires a senior person but gives them a 'junior' mandate. To avoid this, you must ensure the role has clear decision-making authority, a dedicated budget for headcount or tech, and a reporting line that reflects the importance of the function to the firm’s survival.
The Resource Reality Check
If you hire a Head of Risk but expect them to also do all the manual AML checks because there is no junior support, you have under-scooped the role. A senior leader should be spending their time on strategy and high-level advisory, not on the 'admin' that could be handled by an analyst.
The Power Vacuum
A common mistake is failing to give the hire the authority to 'stop' a transaction. If every decision they make can be overruled by a partner without a formal appeal process, the role is under scoped and the firm remains at risk.
The Bottom Line
Don't hire a general and then ask them to clean the boots. Scope the role to include strategic oversight and ensure they have the 'engine' beneath them to handle the day-to-day volume.
Want to know more?
Guide to Hiring Senior Risk & Compliance Professionals in UK Law Firms
Should we hire a Head of Risk & Compliance or a Compliance Manager?
