Compliance

The Compliance Investment Amidst Uncertainty and Change

While changes in Washington suggest regulatory change, companies should not lose sight of goals to improve the approach to risk standards.

Across industries, executive management strategies will consistently look to derive more value from risk and compliance efforts and to increase operating efficiencies through the use of technology. Coupled with the changes anticipated in the U.S. regulatory landscape and the potential for geo-political disruptions that loom, building flexibility and responsiveness into regulatory strategies and systems is critically important.

For organizations to enhance compliance effectiveness and efficiency to these desired levels, and to assure sustainability of the process going forward, it is necessary to integrate compliance with the business functions and essential to invest in and leverage many of the emerging technologies that can facilitate both integration and automation. Automation, in particular, expands an organization’s ability to be truly integrated and ultimately predictive about its evolving compliance needs and operations.  A lull in the pace of new regulation and the potential for a reduction in regulatory demands creates opportunity for organizations to invest time and resources toward process improvements.

Learn more about the journey compliance officers face in the years ahead.

Chief Compliance Officers (CCOs) sit at the center of an expanding compliance framework that demands the ability to work across functions and provides an opportunity to look at the breadth of risks facing their organization. KPMG LLP recently surveyed CCOs from major organizations in seven industries to understand how organizations are responding to the current challenges and pressing changes to the regulatory environment.  Interestingly, a key finding showed that approximately 60 percent of the CCOs were unsure of whether their organization’s technology infrastructure was able to adapt to and align with regulatory changes.  Less than half indicated they had an enterprise-wide reporting system that integrated compliance monitoring with functions and business units.

On the whole, the survey results highlight that organizations have:

  • Made substantial progress in foundational areas such as governance and culture, policies and procedures, and communications and training.
  • Made more limited progress in areas of detection and response, such as monitoring and testing and leveraging the power of technology and data analytics.
  • Much more work to do in areas related to people, skills, and due diligence, such as assessing employee compliance skills, fostering accountability across the three lines of defense, and conducting third-party due diligence assessments.

We invite you to read through KPMG’s report based on the CCO Survey findings, The compliance journey: Boosting the value of compliance in a changing regulatory climate.

 

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Please note that KPMG LLP’s sponsorship of this content is not intended to address the specific circumstances of any particular individual or entity and does not constitute an endorsement of any entity or its products or services. The KPMG name and logo are registered trademarks or trademarks of KPMG International.