PwC's State of Compliance Report 2018: Technology at the heart of innovation in compliance; are you a Leader?

23 July 2018

Organisations face a rapidly evolving compliance landscape, with new technologies and a rapid pace of change meaning businesses need to be on the ball when it comes to managing their exposure to emerging compliance risks.

As a result, PwC has compiled its new State of Compliance Report 2018, with this publication aimed at better understanding the key drivers behind compliance risk at present, as well as a focus on how new technologies are enhancing companies' performance.

With the growing use of new technologies, our analysis revealed some interesting findings; approximately two-thirds of 'Leading' compliance functions are using technology to monitor their employees' compliance with ethics and compliance-related policies/procedures. They are also using analytics and new systems to monitor compliance effectiveness across the board, while many believe they are better equipped to identify outliers or compliance violations in real time because of their technology usage.

That said, there are some interesting differences between respondents from the UK and those based in the rest of the world. Broken down into groups, we identified three distinct classes of organisation - Leaders, Fast Followers and Strivers - with each making use of new technologies to innovate their compliance activities in different ways. Leaders are those organisations that are 'very satisfied' with the effectiveness of their existing compliance programmes. Meanwhile, Fast Followers stated they are 'somewhat satisfied' and Strivers were either 'neutral' or 'dissatisfied' with their current performance. While 17 per cent of global respondents classified themselves as Leaders, this figure dropped to just 10 per cent in the UK.

Leaders are those businesses now making full use of the technologies at their disposal to enhance their overall compliance activities and awareness. Indeed, our report shows that more than half of UK Leaders are monitoring employee compliance in areas including cyber security, fraud, privacy and individuals' use of social media.

Moreover, technology is being used to support enhanced training schemes by approximately one-third of all respondents to our research, enabling them to draw upon multiple sources of information and deliver positive results based on timely, factual data. Minimising exposure to risky activities and educating staff on their compliance responsibilities is now easier than ever when technological solutions are employed.

At the same time, we found that UK businesses appear more likely to embrace a single, overarching compliance policy framework - 68 per cent of UK Leaders have this policy framework in place, compared to just 61 per cent of respondents globally. Investing time and resources into the delivery of a unified compliance policy framework can help them to identify compliance risks more easily and it's currently an area where the UK is ahead of the pack.

If you would like to learn more about how technology is impacting the compliance landscape at present, or if you'd like to know more about how Leaders are making the most of new technologies in their business, download the State of Compliance Report 2018 report.

 

Nicola Shield | UK Governance, Risk and Compliance Leader
+44 (0) 7931 388 648

 

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