Compliance affects nearly every industry, whether through the ethical guidelines for HR practices, safety standards for products, or the complex legal regulations surrounding the financial industry. Laws and guidelines from innumerable regulatory agencies protect consumers and companies—but compliance comes at a cost.
What & Where
Beyond finance, common industries facing compliance:
Time for innovation: Growing investment + increased expectations requires innovation to leverage the big spend
Biggest challenges to compliance programs:
- third-party risks
- developing and promoting employee awareness and training
- monitoring regulatory relationships
BIG DATA is a big risk
- 43% of companies that suffered a major loss from a breach had to close their doors immediately
- 2.65X The cost of non-compliance is 2.65 times higher than compliance
The costs of non-compliance
- legal and regulatory fees
- lost business
- technology and services to recover from non-compliance or data breach
- reparation to customers
How does your business assess the culture of ethics and compliance?
- 57% Using information reported through whistleblower hotlines, internal reporting channels, and/or exit interviews to assess the culture.
- 37% Including ethics and compliance as part of a broader annual survey administered by HR or another department.
- 34% Conducting a stand-alone culture or “ethical climate” assessment or survey.
- 18% Not currently assessing ethics and compliance culture.
- 14% Conducting employee focus groups.
Who’s the designated CCO?
- 60% say the Chief Compliance Officer is a standalone position, especially at larger organizations
- 15% say it is also the general counsel
- 9% say it is also the chief risk officer
- 7% say it is also the chief audit executive
Confidence in internal IT systems is low. Only 6% of respondents say they are very confident in the IT systems’ ability to fulfill the organization’s compliance responsibilities and reporting requirements.
A look into data breaches says cybersecurity is a top threat.
- $3.86M: The average cost of a data breach globally
- Megabreach: A data breach that ranges from 1 million to 50 million records lost that cost between $40 million and $350 million
- 365: The average time to detect and contain a megabreach
- Trust matters: 3 out of consumers say they will not do business with companies they don’t trust to protect their data
- Healthcare: The industry with the reported highest cost of data breaches, costing $408 per lost or stolen record