The Compliance Landscape
Through survey responses, researchers mapped the evolving compliance landscape. The majority of respondents’ compliance programs address multiple areas of compliance, with companies with greater revenues in scope of more regulations. The Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation, the Restriction of Hazardous Substances (RoHS) Directive and the Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65) were the top three regulations respondents indicated they are in scope of.
Your Compliance team
Compliance has become an interdepartmental responsibility, leveraging cross-functional resources to meet requirements, which decentralizes compliance tasks from dedicated compliance employees. Respondents indicated they spend the most time on compliance processes, followed by regulation tracking and assessment, which is a growing contributor to the increase in time spent on compliance.
of respondents reported teams are spending more time on compliance efforts since 2015.
Compliance teams are dedicating more time to compliance efforts, a trend that was also demonstrated in 2018. While the majority of respondents indicate they currently spend more time on compliance, they also expect demands to incrementally increase year over year, with 88 percent of companies predicting they will need to dedicate more time to compliance over the next three years. This demonstrates that a steady increase in resources will be required to manage compliance programs.
Time Spent on Compliance
Companies that have embraced technology are more likely to see improvements in their compliance programs. Across all revenue bands, companies that have embraced technology and automation to support data collection, validation and management are more likely to report they are more satisfied with their compliance program today as compared to three years ago. Companies that have embraced automation for supply chain data management benefit from streamlined processes and efficiencies. Those leveraging third-party solutions are more likely to benefit from technology and features that cannot be built and maintained in internal software solutions.
Companies that were more or significantly more satisfied with their compliance program than three years ago:
The Average Cost
The average cost of compliance is significantly higher than the salary costs estimated by respondents. Costs also accrue in processes related to design, governance, compliance tolls, supplier engagement and data governance. As demands continue to increase year over year, companies — particularly those that rely on manual processes — can expect to see the associated cost of compliance rise.
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