How Organizations Commit to Compliance

By Dennis McCafferty  |  Posted 10-06-2016 Email

Reflecting an era when risk has emerged as a growing business concern, senior leadership at nearly all organizations remains committed to compliance and ethics programs, according to a recent survey from PwC. The resulting report, titled "PwC State of Compliance Study 2016: Laying a Strategic Foundation for Strong Compliance Risk Management," indicates that most senior leaders are delegating this role, frequently identifying "owners" of specific compliance and ethics-related risks and assigning tasks accordingly. Most have launched an enterprise risk management (ERM) process that covers compliance and ethics. And the majority of survey respondents said their senior leaders formally communicate with employees about these topics. To take compliance/risk efforts to the next level, however, organizations should consider increasing the input of compliance officers on overall strategic business planning—something that relatively few companies are doing. "The connection of compliance to business strategy—including tone at the top, risk assessment and oversight and responsibility—lays the strategic foundation for both a culture of compliance and ethics, and (of) management programs that help ensure the organization conforms to all necessary regulatory requirements and ethical standards," according to the report. "Without strong alignment of compliance management to business strategy, it is difficult to efficiently integrate compliance into business processes and to assess the effectiveness of compliance efforts against strategic objectives." More than 800 global execs took part in the research.

Dennis McCafferty is a freelance writer for Baseline Magazine.


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