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Banks are increasingly trying to hire, and talking about hiring, military veterans, hoping that giving jobs to war heroes will help repair the industry's reputation.
June 22 -
The Armed Forces Benefit Association plans to sell its bank to local management. While insurers have been fleeing the industry due to regulation, the group says it is getting out because its membership's use of the bank is falling and it would rather use the capital to expand its life insurance business.
June 4 -
As the role and responsibilities of compliance officers has grown, so has the need to ensure that those employees can effectively communicate with the rest of the bank.
February 11
Budget cuts forced the layoffs of
The departure of these officers, and the intellectual capital they have accrued, is a tremendous loss to the nation's defense. But the Army's loss can be corporate employers' gain as long as firms, especially those in the financial sector, understand and appreciate the skill sets that young officers bring with them.
With multiple deployments to Iraq and Afghanistan, the junior officer corps has made tremendous contributions to the war effort because of their ability to respond quickly to constantly changing battle conditions. Given great autonomy for decision-making and follow-through, these soldiers' experiences have enabled them to help create and deploy ever-evolving doctrine on counter-insurgency operations demonstrating their ability to solve complex problems both on and off the battlefield.
The skill set that successful military commanders have acquired is exactly what is demanded of compliance officers in today's strict regulatory environment. The 2010 Dodd-Frank law, coupled with the continuation of the Sarbanes-Oxley Act of 2002, have made accurate risk assessment a top priority. These stressful jobs in corporate compliance review are not for the timid. U.S. Deputy Attorney General James Cole recently
Today's battle-hardened military officers understand these kinds of consequences, having spent years helping to strategize solutions to ever-present problems in Afghanistan and Iraq. Not only are the current cohort of captains responsible for the lives of the men and women under their command, a large number of them are also personally responsible for overseeing complex weaponry systems, elaborate missile defense systems, logistics, transportation, and taking ownership of several million dollars' worth of Army property.
Attention to detail, risk management, and an uncompromising adherence to making informed, data-driven decisions have characterized the careers of successful commanders for more than a decade. These qualities will help them head off weighty compliance issues such as data reporting errors, which can result in severe restrictions on these institutions' activities and diminish their ability to survive.
These young veterans deserve a competitive advantage in the current corporate compliance hiring spree. As the Wall Street Journal recently
While the compliance field is heating up, Wall Street banks and other companies face a talent shortage. This is partly because the field is notoriously difficult and demanding. Hector Sants, the former compliance chief for Barclays,
The real challenge may lie in convincing this talent pool that they will find a challenging and rewarding position in compliance review. One of the advantages of such work is that in today's aggressive government enforcement, the compliance officer plays a vital role in the leadership team within an organization. In many companies, compliance officers are given a direct line to their company's chief executive. This would certainly appeal to the junior officers who became accustomed to the autonomy of serving as a leader in villages or neighborhoods in Iraq and Afghanistan and frequently briefed their progress to superiors at the colonel and general officer level.
The compliance field will continue to experience a demand for talent as federal regulators introduce further reporting requirements for financial institutions. Veterans have the leadership skills and experience to grasp doctrine and deploy both strategic and tactical solutions. Financial firms should be tapping these officers to provide the transformational leadership necessary to achieve best-in-class benchmarks for the industry.
Former U.S. Army Capt. Jonathan Hendershott (West Point, 2007) served in Iraq with the 101st Airborne Division and as a company commander in Ft. Hood, Texas. He currently works as a business management consultant in New York City.