Dare we imagine a world where companies are driven by their compliance obligations as much as they are by their financial performance? In a progressively interconnected and fast-paced digital world, compliance matters more than ever. Non-compliance can swiftly result in reputational damage, punitive fines, and compromised stakeholder trust. As such, more organizations are beginning to embrace the importance of having mature, robust compliance programs. This episode of Corruption, Crime, and Compliance with Michael Volkov dives into NAVEX’s 2023 State of Risk and Compliance report. The report delivers a comprehensive overview of the global compliance landscape and sheds light on critical trends that are reshaping the field.
You’ll hear him discuss:
- We’ve seen a substantial increase in organizations with mature compliance programs – 53% in 2023, compared to 38% in 2022. This is a testament to organizations worldwide waking up to the importance of compliance in their everyday operations.
- The power of leadership: robust leadership support is crucial when it comes to fostering a thriving compliance program. Strong board and executive-level engagement have proven instrumental in driving these changes.
- As the world becomes more digitized, cybersecurity threats have increased exponentially. Consequently, cybersecurity has skyrocketed to the top of compliance concerns, indicating how cyber threats and breaches have a far-reaching impact on organizations.
- Compliance and information security professionals are coming together like never before. This internal partnership proves crucial in managing cybersecurity risks and ensuring the safety of organizational data.
- The NAVEX report identified five high-stake risks that organizations should keep on their radar: cybersecurity, regulatory compliance, harassment and discrimination, anti-bribery and corruption, and diversity, equity, and inclusion. Addressing these will require diligence and strategic planning.
- There has been a decline in middle management’s commitment to compliance compared to 2022. This dip stresses the need for targeted interventions to maintain the integrity of the compliance culture.
- From HR to IT, effective compliance necessitates collaboration across all levels and departments.
- With growing compliance demands, organizations are realizing the importance of purpose-built solutions. These platforms help manage third-party risks, and policy management, and provide ethics and compliance training, making them indispensable in the modern compliance toolkit.
KEY QUOTES:
“So 53% stated that their organization had a mature compliance program and risk management program and that was compared to only 38% in 2022. Now that to me is a really welcome sign.” – Michael Volkov
“I think perhaps the most significant finding in this area to me was that in recognition of the rising threat level from cybersecurity attacks, ransomware, data privacy ethics and compliance professionals are forging new and lasting internal partnerships with information security professionals.” – Michael Volkov
“Three-quarters of respondents reported that senior leaders encourage compliance in the organization, and nearly as many report that senior leaders demonstrate their commitment to compliance to employees. So it’s not just words, but it’s words and actions. However, there was one troubling concern, and that was with respect to middle management. …So NAVEX reported a lower commitment compared to the 2022 report with regard to middle management commitment to compliance.” – Michael Volkov
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