Measuring compliance in today’s data-driven landscape helps prevent reputational damage and avoid costly fines and enforcement actions. However, getting overwhelmed by the sheer volume of data at your fingertips is easy. Compliance is mandatory in this ever-evolving and regulated business landscape. So, how do you measure the effectiveness of your compliance programs? This article at Indeed discusses compliance metrics, the significance of measuring them, and tips for choosing the best metrics.
What Are Compliance Metrics?
“Compliance refers to your organization or company’s ability to abide by the rules and regulations within its industry and business. A compliance program includes steps and procedures you and your colleagues can follow to ensure you are complying with regulations,” says the author. These metrics help compliance professionals identify gaps in their programs and have better controls in place. Furthermore, it enables the organization to be more risk-aware.
Benefits of Measuring the Effectiveness of Compliance Programs
A robust compliance program offers a systematic set of guidelines to:
- Keep the staff focused on the organization’s rules
- Protect the organization’s reputation
- Set the right expectations around employee behaviors and compliance practices
- Guard the company against expensive lawsuits and regulatory fines
- Avoid customer attrition due to non-compliance
Key Compliance Metrics that Your Officers Must Use
Every organization is different, and there is no ‘one-size-fits-all’ solution. However, here are some standard compliance metrics your corporate officers must consider.
Employee Complaints About Misconduct
Employees’ claims about misconduct within an organization will severely damage its reputation. Therefore, measuring the number and the nature of employee complaints is crucial. Analyze the type of allegation: illegal activity, fraud, unethical behaviors, discrimination, and harassment. Assess the data to identify:
- The number of incidents reported
- Types of allegations
- If the allegation was validated or not
Compliance Expenses
This metric indicates the issues or controls that involve more cost than others to resolve. You can implement the right initiatives to strengthen your compliance programs when you accurately know the time and effort included in executing compliance activities.
To read the original article, click on https://www.indeed.com/career-advice/career-development/what-are-compliance-metrics.
