Roadblocks stymie compliance programs: compliance initiatives lack resources and metrics needed to succeed.


Resource constraints are impeding large companies' compliance efforts--that is, when they aren't blind to the right risks, notes a new Compliance Week survey sponsored by Deloitte & Touche LLP. The Compliance Trends Survey 2013 of 189 compliance executives from mostly U.S. companies with more than US $1 billion in annual revenue reveals that 52 percent of their compliance functions have fewer than six full-time staff members, and 47 percent spend less than US $1 million on compliance activities.

"The compliance function continues to be under-resourced in both people and money--at a time when the importance of the role is growing rapidly," says Tom Rollauer, executive director of the Deloitte Center for Regulatory Strategies. He explains that compliance executives' success often depends on how effectively they can promote a culture of compliance and establish compliance controls within business processes.


Those efforts may not be as successful as executives believe. About one-third (31 percent) of respondents say their company doesn't measure the compliance program's effectiveness, and those that do measure it use rudimentary metrics such as the volume of hotline calls, participation in compliance training, and internal audit results. Measuring compliance can be difficult, but there are cost-effective ways to do it. "Conducting employee...

To continue reading