CEO Insights Magazine

The role of a Head of Risk and Compliance is pivotal in ensuring that an organization navigates the complex landscape of regulations and standards that govern its operations. This leader is responsible for identifying, assessing, and mitigating risks while ensuring compliance with both internal policies and external regulations. They develop and implement compliance programs, educate employees on ethical practices, and oversee audits to safeguard the organization’s integrity and reputation. By fostering a culture of compliance, they help prevent legal issues and promote responsible business practices, thereby supporting the organization’s long-term success.

Head of Risk and Compliance at Leonardo Malaysia, Subathiran Narayanan’s journey has been one of continuous learning, growth, and dedication to the field of compliance. He began his career after graduating with a degree in Human Resource Management from Universiti Tenaga Nasional (UNITEN). His first role as a Junior Compliance Executive laid the foundation for his understanding of regulatory frameworks and corporate governance.

Over the years, Subathiran has worked in various compliance roles, gaining unique insights into local and international regulatory environments. Today, as the Head of Risk and Compliance at Leonardo Malaysia, he leads strategic initiatives to ensure the organization stays ahead of both national and international laws, including trade compliance, anti-corruption measures, and anti-money laundering regulations.

His journey has been fulfilling, not only enhancing his own knowledge but also sharing it with his teams to cultivate a culture of compliance and ethical business practices. Each step has been instrumental in shaping the leader he is today, from mastering the fundamentals of compliance to overseeing and implementing complex, global compliance programs. Subathiran looks forward to continuing to build upon this foundation as he leads the compliance efforts at Leonardo Malaysia. Let’s hear more from her.

How have these experiences benefited you in providing strategic direction to the management team on compliance?

The experiences I’ve gained through close collaboration with the compliance team at our parent company have been invaluable in guiding the management team on compliance matters. This partnership ensures we stay aligned with both local regulations and the international regulatory framework set by our parent organization. Our focus on compliance is deeply rooted in Leonardo’s Charter of Values, particularly Ethics and Respect, which fosters a corporate culture built on responsibility, fairness, and ethical conduct.

At Leonardo Malaysia, we uphold these values, strengthening our internal compliance processes while fostering a culture of integrity and accountability. By actively engaging with the compliance team, I take responsibility for helping the management understand and proactively address regulatory risks. This commitment reflects our dedication to transparency, honest communication, and risk management—principles at the heart of our company’s values.

Additionally, the synergy between my compliance experience and Leonardo’s core values of Innovation and Excellence helps us remain competitive while maintaining the high standards required in regulated markets. This approach not only ensures compliance but also allows us to operate efficiently and responsibly on a global scale.

Could you share your expertise in conducting regular risk assessments, especially in light of changing circumstances and different types of risks?

In our Risk and Compliance Department, we spearhead the process of conducting regular risk assessments. We employ tools such as the Anti- Corruption Risk Assessment template and the Compliance and Risk Assessment (CPRA) template, which allow us to evaluate all relevant risk areas effectively.

During these assessments, we identify both process owners and risk owners to establish clear accountability for managing specific risks. We engage in ongoing discussions to analyze the effects and impacts of risks while developing appropriate mitigation strategies. Our findings are then presented to management, which helps us formulate comprehensive recovery plans. This systematic approach ensures that risks are continuously monitored, mitigated, and communicated effectively throughout the organization.

How do you facilitate effective communication with the leadership board, regulatory bodies, industry groups, or vendors to ensure collaboration on compliance tasks?

At Leonardo Malaysia, we prioritize effective communication on compliance matters within the management board. We conduct regular meetings to discuss compliance-related issues, and the management team is fully dedicated to addressing these topics with the highest importance. Our monthly and quarterly reporting practices ensure that key compliance tasks are closely monitored and followed up, which enhances accountability.

We also provide compliance training for all relevant departments, equipping staff with the knowledge and skills needed to manage compliance issues effectively. Open dialogue is encouraged, allowing team members to voice concerns or seek clarification on compliance matters.

For interactions with regulatory bodies, we primarily use email, ensuring prompt responses that facilitate quick resolutions. Additionally, we engage with industry groups to stay updated on best practices and regulatory developments. This structured approach fosters transparency, builds trust, and promotes a collaborative environment for compliance at all levels of the organization.

How do you cultivate a strong culture of compliance within your administration? What thought process do you apply to make informed decisions that address issues and minimize their recurrence in the future?

In my administration, nurturing a robust culture of compliance is essential. We emphasize the importance of understanding compliance matters and the regulatory framework, ensuring that all team members are well-versed in the procedures they need to follow. This is achieved through regular training sessions and workshops that highlight compliance's significance and the specific requirements that govern our operations.

We also establish clear communication channels and reporting structures, enabling team members to easily voice concerns or report issues. This transparency fosters an environment of openness and accountability.

When it comes to decision-making, I adopt a systematic approach that includes thorough analysis and consultation with the compliance team. We evaluate the root causes of any issues and consider the potential implications of our decisions on compliance and risk management.

Subathiran Narayanan, Head of Risk & Compliance, Leonardo

Subathiran Narayanan is the Head of Risk and Compliance at Leonardo Malaysia. With a background in Human Resource Management from UNITEN and extensive experience in compliance, he leads strategic initiatives to ensure adherence to national and international regulations, fostering a culture of integrity and ethical business practices.