What is top-of-mind with CCOs? – New KPMG survey

In a period of discordant and highly-sensitized public policy and intense regulatory activity, Chief Ethics and Compliance Officers (CCOs) are feeling increasing pressures from Boards and regulators.  Areas of key compliance focus include: data protection/cybersecurity, consumer protection and innovative technologies. In fact, a survey of 240 CCOs from the largest Fortune 500 organizations across six industries, conducted in February/March 2023 by KPMG LLP, showed that almost three-quarters (73%) of organizations are set to bolster levels of compliance given increasing regulatory expectations and scrutiny.

“Compliance feels acute pressure to enhance - not only to be more effective and efficient - but in order to meet increasing Board and regulator expectations,” said Amy Matsuo, Principal and National Leader, Compliance Transformation & Regulatory Insights, KPMG LLP. “Technology and data analytic investment to the Ethics & Compliance function is no longer a ‘nice-to-have’, it’s a necessity to help mitigate, measure and identify risk.”

Key survey data also showed that:

1. Increasing pressures on compliance from boards and regulators

  • 73% of CCOs indicated increasing regulatory expectations and scrutiny, while
  • 53% said that they face pressure from Boards to enhance compliance

2. New regulatory requirements top list of looming challenges

  • 43% of CCOs said that new regulatory requirements are the top compliance challenge, followed by
  • 28% for data analytics/predictive modeling for compliance monitoring and risk management

3. Industry regulations top list of key compliance focus

  • 45% of CCOs said that industry-specific regulations top the list of key compliance focus, followed by
  • 33% for cyber/information protection

4. Sustainability/ESG compliance is in development

  • 48% of CCOs said that they have not yet implemented an ESG compliance plan, while
  • 56% said that enhancing the monitoring/testing of ESG metrics in the next 2 years is a top priority

5. Compliance technology & data analytics tops areas to enhance

  • 53% of CCOs said that they look to enhance technology and data analytics, while
  • 63% expect an increase in the technology budget

6. Accountability and talent shortages/retention top workforce worries

  • 45% of CCOs said that they have expanded ethics and compliance training, while
  • 56% are to increase compliance full-time equivalents (FTEs)

Amy Matsuo is the Principal and National Leader, Compliance Transformation & Regulatory Insights, at KPMG LLP. For more information on the CCO survey or to arrange an interview with Amy, please contact Andreas Marathovouniotis.

2023 KPMG Chief Ethics and Compliance Officers Survey
Click to read more results from this year's survey

Media Contact

Andreas Marathovouniotis

Andreas Marathovouniotis

Associate Director, Corporate Communications, KPMG US

+1 201-307-7608

 

 

 

 

 

 

 

 

 

 

 

 

Related content