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
2. New regulatory requirements top list of looming challenges
3. Industry regulations top list of key compliance focus
4. Sustainability/ESG compliance is in development
5. Compliance technology & data analytics tops areas to enhance
6. Accountability and talent shortages/retention top workforce worries
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.