The State of
Regulatory compliance is a broad term used to define an ever-changing landscape that companies must navigate in order to protect their brand, business, market access and human resources. In The State of Compliance report for 2017, researchers collected data specifically to more clearly define what compliance really looks like, and to help companies develop informed, efficient and effective compliance programs. Download The State of Compliance 2017 report today for insights into the landscape, how companies structure their teams and programs, and the true costs of compliance.
The collected data allows a better understanding of the evolving compliance landscape within which companies must operate. Nearly 70 percent of respondents said they were in scope of product compliance regulations, such as REACH and RoHS. Alongside Section 1502 of the Dodd Frank Wall Street Reform and Consumer Protection Act, these were the top three in-scope regulations listed by respondents.
Over 40% identified themselves as manufacturing companies
Nearly 50% of respondents were publicly traded companies
50% Over 50 percent of respondents were companies with 500 or more employees
Compliance has become an interdepartmental responsibility, leveraging cross-functional resources to meet requirements. Respondents listed a longtail list of departments and their functions involved in compliance. These results indicate a lack of standardization across all industries for regulatory compliance, team structure and functional organization.Get more insights in the report
Top five departments involved in compliance programs
Despite the growing power of technology and automation, compliance continues to be a largely manual process for most companies. Fifty percent of respondents indicated they managed their programs manually, while only 29 percent leverage software for automation. However, this is a changing trend as one of the top opportunities in managing compliance programs was listed as being able to manage all tools from one location.
29% of respondents are using a third-party software solution
21% of respondents use internally-developed solutions
50% of respondents indicated they continue to manage their programs manually
Compliance personnel are working hard to meet their company’s requirements. Data indicates most companies have, at minimum, two full-time equivalents working on their programs, who in turn work alongside part-time resources in various departments such as legal and administration.
2,000 hrs/year The threshold for a full-time equivalent (FTE) resource.
Approximate number of hours each department contributed to their compliance programs annually
Up to $3000000 budget vs true cost disparity
The True Cost of
Data provided on how much companies spend on their compliance programs indicate a large disparity between budget lines and true costs. By leveraging data from several categories within the survey, researchers were able to estimate true costs against provided budget lines which, in some cases, resulted in a disparity of over $3 million annually.Get more insights in the report
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