In one of our recent podcasts, Erika Trujillo advocated for the ‘Chief Trade Compliance Officer’ role and the need for trade compliance to have a voice on boards. We couldn’t agree more. As a department which interacts daily with multiple internal teams and operates at the heart of the business, we have to wonder why trade compliance still operates ‘behind the scenes’ in many organisations?
We sense things may be changing, as companies increasingly appreciate the impact of geopolitics, sanctions and regulatory change.
Here’s why trade compliance deserves a seat at the executive table, and what forward-thinking companies are doing to elevate its role.
- Global risk exposure has skyrocketed
From the Russia-Ukraine war to U.S.-China tensions and evolving EU sanctions, the international trade landscape has become a minefield. Companies can now face multi-jurisdictional enforcement for missteps in customs, export controls or sanctions compliance. Fines and penalties can run into the billions and reputational damage even higher.
Executive involvement is essential to ensure that risk appetite, commercial objectives and compliance obligations are aligned from the outset, not retro-fitted after the fact.
2. Enforcement is no longer optional
Regulators worldwide - such as the U.S. BIS, OFAC and the European Commission - are becoming increasingly aggressive in enforcement. Voluntary self-disclosures, third-party screening and robust compliance programmes are not only recommended, they’re expected.
Boards and senior executives are being held personally accountable for failures in oversight. Giving trade compliance a voice at the top table helps ensure proactive governance, risk mitigation and responsiveness in a crisis.
3. Supply chain strategy = Trade Compliance strategy
With companies rethinking global sourcing strategies in light of nearshoring, decoupling and sustainability targets, trade compliance professionals play a vital role in informing sourcing decisions, tariff exposure and import/export feasibility.
Without their input at the planning stage, businesses risk building supply chains that are unworkable, non-compliant, or unnecessarily costly.
4. Third-party and customer risk is growing
As due diligence expectations rise under global ESG and human rights regimes (such as the EU’s Corporate Sustainability Due Diligence Directive), trade compliance teams are on the front line of assessing third-party risk, from customers and suppliers to freight forwarders and end-users.
Elevating their voice ensures ethical business practices are embedded into strategic partnerships from the outset.
5. Trade Compliance as a strategic advisor
The most successful businesses now view trade compliance as a value enabler, not a blocker. When engaged early, trade compliance professionals can:
- Flag red flags in new market entries
- Secure licenses or duty savings
- Prevent costly enforcement issues
- Support ethical growth in high-risk jurisdictions
But this only works when compliance has visibility, influence and authority.
What this means for hiring
As trade compliance roles become more prominent, hiring strategies need to be aligned. Today’s senior trade compliance professionals must combine:
- Technical regulatory expertise
- Commercial acumen
- Stakeholder management
- Strategic risk thinking
- Global perspective
For many businesses, this means re-evaluating reporting lines, titles and the scope of trade compliance roles. And, of course, partnering with a specialist trade compliance recruiter, who can access top-tier talent.
If you are looking to grow your trade compliance team into a world-class function, please get in touch with Jamie Browne to see how we can help!
