Improvements, Investments in Compliance Programs in Vogue for 2012
Majority of companies plan to focus more time and resources on improving compliance programs, a new poll released today by Deloitte shows.
Deloitte polled more than 1,975 business professionals from the financial services, consumer and industrial products, technology, media and telecommunications, and other industries during a recent webcast titled, “Stress Testing Your Compliance Program.”
“After years of seeing corporate America cut compliance budgets and headcounts, it’s good to see that many companies seem to be getting back to investing in and continuing to hone their compliance programs in the near term,” said Donna Epps, partner, Deloitte Financial Advisory Services LLP and national leader of Deloitte’s anti-fraud consulting group.
“Since companies constantly evolve and regulations change, corporate risk profiles are seldom static. But, it can be a challenge to triage the areas where compliance programs aren’t commensurate with organizational exposures.”
The poll showed that the respondents are primarily concerned about the potential for management to override controls over their companies’ compliance programs (17.2 percent). Moreover, respondents cite inadequate tone at the top (14.5 percent) and excessive pressure on unrealistic sales and performance expectations (14.5 percent) as additional leading management-related challenges to their compliance programs.
“Management typically has the biggest impact on compliance program effectiveness,” said Robert Biskup, a director in the forensic & dispute services practice of Deloitte Financial Advisory Services LLP.
“We’re seeing more and more management teams recognizing the importance of their actions as crucial in leading the way for corporate compliance efforts. The commitment of so many to invest in compliance in 2012 is one good example of that. If leadership makes compliance a strategic priority, chances are good that their companies’ programs will be among the most effective.”