In today’s rapidly evolving regulatory landscape, compliance isn’t just a back-office function—it’s a business-critical asset that protects firms from financial, operational, and reputational risks. However, many compliance teams struggle to gain board-level buy-in for the training, consultancy, and resources they need to stay ahead of complex requirements. In my experience, making a successful business case requires speaking the board’s language: focusing on risk, return on investment, and strategic value.
Here’s how you can frame the conversation effectively while addressing the risks of falling behind on compliance obligations.
1. Start With the Business Impact of Compliance Failures
Boards are driven by measurable outcomes. To gain their attention, highlight the tangible risks of underinvesting in compliance. This includes:
Financial Penalties: Regulatory fines for non-compliance have become more severe. For example, in 2024, the Financial Conduct Authority (FCA) imposed fines totalling £176,045,385 on non-compliant financial services firms. This marks a material increase from the £53.4 million in fines issued in 2023, representing a 230% rise. These figures underscore the FCA's intensified focus on enforcing compliance within the financial services sector. Firms are advised to proactively strengthen their compliance programs to mitigate the risk of substantial penalties.
Operational Disruption: Failure to comply with regulations doesn’t always necessarily result in enforcement action. The new assertive, data-led FCA is increasingly taking a supervision-led approach. Which means that breaches can lead to time-consuming remediation projects. These projects do not enter the public domain but are incredibly distracting taking senior management and budgets away from core business objectives.
Reputational Damage: Reputational risks often have long-lasting effects, impacting client trust and causing damage by word of mouth and to market position.
Presenting case studies or recent examples from your sector can help drive the message home. The board needs to see that non-compliance is not a hypothetical threat—it’s a business risk with real-world consequences.
2. Frame Compliance as a Strategic Business Enabler, not a Cost
One common reason boards hesitate to approve additional training or consultancy budgets is the perception that compliance is a cost centre rather than a value driver. To change that narrative, demonstrate how robust compliance practices can protect and even enhance the company’s competitive edge.
For example:
Attracting Institutional Clients: Many large clients prioritise working with firms that have strong governance and risk management frameworks.
Facilitating Growth: Expansion into new markets often requires navigating local regulatory complexities. A well-trained team reduces risks and accelerates entry.
Strengthening Investor Confidence: Investors look for companies with resilient compliance processes that protect long-term performance.
By linking compliance investments to business outcomes, you can shift the conversation from “cost” to “opportunity.”
3. Quantify the Return on Investment (ROI)
Boards are numbers-driven, so your business case should include clear financial metrics. You can’t always predict the cost of avoided fines or disruptions, but you can illustrate savings or efficiencies gained through proactive compliance management.
Some metrics to consider:
Cost Avoidance: Estimate potential fines or remediation costs that could arise from failing to meet key regulatory requirements.
Efficiency Gains: Quantify time saved through streamlined processes or automation driven by consultancy recommendations.
Revenue Protection: Show how maintaining regulatory compliance can protect customer relationships and prevent revenue loss.
Additionally, emphasise the long-term benefits. Investing in training or external consultancy now can prevent costly future audits, investigations, or remediation projects.
Often a reason not to look at a process or adjust things appropriately is because the extra effort required without acknowledging the potential longer-term benefits,
4. Address Common Objections Head-On
Boards often have legitimate concerns about budget allocations, so be prepared to address common objections, such as:
“We’ve already spent on compliance last year.” Highlight that regulatory requirements evolve quickly, and past investments don’t guarantee future compliance. For example, the growing focus on cyber security, fraud risk, and operational resilience demonstrates how rapidly new areas of risk can emerge.
“Why can’t we handle this internally?” Explain that external consultants often bring specialised knowledge and support an often over stretched compliance team, especially in emerging areas like crypto regulation or evolving FCA guidelines. This expertise can complement internal efforts and accelerate outcomes.
“Training disrupts productivity.” Emphasise that well-trained teams reduce disruptions by handling compliance issues more efficiently. Prevention is less costly and time-consuming than remediation and training that helps people understand “why?” instead of just a mandatory tick box is always far more effective.
5. Collaborate With Key Stakeholders Before Approaching the Board
Winning board approval is often easier when you have allies within the organisation. Collaborate with key stakeholders—such as the CFO, COO, or risk management team—to build a unified case. The CFO can help quantify financial risks, while the COO may support how compliance ties into operational efficiency.
Presenting a joint business case from multiple departments signals that compliance is not a siloed issue but a company-wide priority.
6. Highlight the Risks of Inaction
Finally, be clear about what’s at stake if the board chooses not to invest. Compliance failures can escalate quickly, with minor gaps snowballing into major issues. Illustrate how inaction could lead to:
Regulatory investigations that drain resources and damage credibility.
License restrictions or revocations, impacting business continuity.
Loss of competitive advantage, as competitors with stronger compliance processes capitalise on growth opportunities.
Loss of clients if they are unhappy with services or the remediation of problems
Boards need to understand that the cost of doing nothing can often far exceed the cost of proactive investment.
Final Thoughts: Building a Culture of Compliance
Gaining board-level support for compliance resources isn’t a one-off task—it’s part of building a culture where compliance is seen as integral to the firm’s success. By aligning your business case with the board’s priorities—risk mitigation, strategic growth, and ROI—you can position compliance as a strategic enabler, not just an obligation.
As regulatory landscapes continue to evolve, the firms that thrive will be those that treat compliance as a core pillar of their business strategy. Make sure your board understands this—and give them the tools to make informed, proactive decisions.
We’ll be running some webinars on this topic over the coming weeks. Do contact us at Leaman Crellin in the meantime if we can help you prepare for these conversations or your regulatory and compliance needs.
Comments