This year’s survey shows growing organisational focus on the new unholy trinity: data breaches, questionable sales practices and organizational misconduct…
The report, KPMG’s 2019 CCO Survey: Insights for the future of ethics & compliance, interviewed 220 chief ethics and chief compliance officers (CCOs) to gauge attitudes towards ethics and compliance.
The results were heartening. Simply put, most organizations – regardless of industry – are taking ethics and compliance risks seriously.
Not only did the report find CCOs active and alert to potential ethics and compliance risks, it found those same CCOs actively working towards improvements in key areas across their enterprises.
According to the report the top five areas where CCOs are planning to improve and enhance their company’s ethical and compliance chops are: investigations (65%), monitoring and testing (65%), data analytics (32%), regulatory change management (32%) and reporting and data visualization (32%).
“There is a growing consensus across all industries regarding the key areas organizations need to focus on and enhance, not only in ethics and investigations but also on the maturity of ethics and compliance programs,” says Amy Matsuo, KPMG principal and Regulatory Insights national leader.
“This is likely driven not only by a commonality of risks but also converging business models.”
The report also found that boards are taking ethics and compliance oversight and supervision seriously, and ensuring that “business line accountability for ethics and compliance is well-established”.
“Increased public awareness and regulatory focus – along with market pressures for greater agility and real-time responsiveness to identify misconduct – are driving organizations to improve their investigations function,” Matsuo says.
“Integrating investigation activities more closely with ethics and compliance risk management by enhancing investigation reporting and investing in new technology, such as AI, can help to consistently identify and analyze root causes and trends and improve the production of investigation resolutions.”
For those looking to improve ethics and compliance processes across the areas of people and skills, process and data analytics, and technology:
- Revamping investigations processes, case management, reporting and communication
- Embedding accountability via ethics- and compliance-driven employee metrics
- Continuing to drive integrated governance and reporting across Ethics & Compliance, Legal and Human Resources departments
- Evaluating available data and the integrity of that data for use in predictive analytics enterprise-wide
- Establishing guardrails and new risk processes for evolving business digitization, data analytics, and automation
- Investing in technology and/or tools to drive greater data access, quality and automation to compliance monitoring, testing and enhanced data analytics
- Continuing enhancements to scans and the inventory of regulatory changes and dynamically link to associated operational controls
- Elevating and/or redesigning ethics and compliance to integrate with business operations
Download the full report here: KPMG’s 2019 CCO Survey: Insights for the future of ethics & compliance