What is a competency register - and why is it important? 

In both the public and private sectors, there is increasing attention on the need to ensure integrity and trust in decision-making processes. One of the most important tools to achieve this is a competency register, but what is it really, and why has it become so relevant?

What is a competency register?

A competency register is a tool that makes it easy to register, assess, and follow up on potential conflicts of interest in an organization. It functions as a structured overview of:

• Employees' (or their close relatives') roles, positions, and ownership stakes

• Relationships with close associates and companies

• Gifts given and received, listed in a gifts register

• Self-declarations and competency assessments

A modern competency register also allows for linking information to external registers, which automatically notifies the organization when potential conflicts of interest arise.

Why do organizations need a competency register? 

A competency register gathers information about relationships, financial interests, and other factors that may create conflicts of interest. This may include:

• Ownership stakes in companies

• Board positions or other roles in organizations

• Family relationships that may influence decisions

• Previous engagements that may be relevant

By having this information readily available, organizations can quickly assess competency issues and implement necessary measures to ensure objective decision-making processes. The competency register provides a clear overview of potential ties between employees and the market and ensures compliance with internal guidelines in a structured and effective manner.

Who should have a competency register?

All organizations that make decisions where competency may be an issue, especially in sectors where financial interests and decision-making overlap, can benefit from such a register to enhance transparency and integrity. This applies particularly to: 

Public agencies and municipalities
Have a special responsibility to ensure competency in accordance with the Public Administration Act and the Local Government Act, and must be able to document objective and transparent decision-making processes.

Large businesses and corporations
Often operate with complex structures and geographic spread, making it challenging to follow up on competency assessments without a central system.

Organizations with large purchasing departments
Handle many and often large purchases, where the consequences of conflicts of interest are high and the need for traceability is important.

Financial institutions and asset managers
Both regulated and unregulated actors handle sensitive decisions and others' assets. Here, transparency and trust are crucial for reputation and risk management.

Foundations, research environments, and non-profit organizations
Manage funds and assign roles, which requires transparency and verifiability to maintain trust and legitimacy.

How to implement a competency register

Implementing a competency register requires clear guidelines and good management. It is important that the information in the register is kept up to date and that users understand the importance of reporting relevant matters. With the right approach, a competency register can be an effective tool for strengthening trust, preventing conflicts of interest, and creating a more transparent decision-making process. 

Arx Compliance offers digital solutions for competency registers - tailored to your organization's needs. Is your organization ready to implement a competency register? Contact us for a non-binding conversation!