Compliance Trend Report 2023
Voxius recently conducted a survey of senior compliance professionals in the international business community to identify current trends in this field. As part of this survey, Voxius conducted 58 interviews with individuals (outside the financial sector) who influence or lead their organizations’ in-house compliance programs.
Read our 2023 Compliance Trend Report here
Quality over quantity
The study is based on in-person interviews with compliance managers. This is due to the differences among the participating companies and the varying levels of maturity of their respective compliance programs. The participants answered qualitative questions about their current compliance needs, the status of their programs, their goals for the coming years, and so on. The Trend Report reflects the trends observed during all of the interviews.
Some trends
The study reveals a number of interesting trends, some of which we will mention here:
- 35% of the compliance officers interviewed would like to be able to measure the effectiveness of their program (more effectively);
- 71% of participants have experienced compliance incidents. Only half responded by implementing new compliance requirements and/or additional training;
- More than half (56%) of the participants have a risk-based (defensive) compliance program;
- Compliance is often not informed (in a timely manner) of internal stakeholders' business plans: only 29% receive the plans early enough to integrate compliance objectives.
A "sense" of compliance
The study also shows that companies are increasingly aware that it pays to position themselves as attractive market players. Customers, suppliers, and employees all want to align themselves with a company that operates with integrity and in an ethical manner. Especially when it comes to ESG, companies are realizing that paying more attention to these issues leads to value creation.“Compliance gives us a competitive edge.”
Most companies still follow a defensive approach, but the importance of a sound compliance policy is increasingly recognized. The driving force is shifting from:
Externally driven: compliance with laws and regulations (to avoid fines and reputational damage);
To:
Internally motivated: an intrinsic desire to contribute to a better world for internal and external stakeholders.
The Importance of Compliance
How do you demonstrate to management that a compliance program is effective, and how do you measure, for example, an open culture? Currently, various methods are used to evaluate effectiveness: risk assessments, employee training, incident management, audits, exit interviews, etc.
Of the survey participants, 35% would like to have more data available to demonstrate the effectiveness of compliance. Software tools can partially meet this need (speak-up programs, third-party screening, privacy, etc.), but the ultimate value of compliance will always depend on internal support. It is the compliance officer’s responsibility to continue to meet this need.
The 2023 Compliance Trend Report is available .
Regien Haarbosch,
Partner, Compliance Management, Voxius