Compliance as noted in the recent CFO article “Compliance Mountains to Climb” is interesting because it is a pass/fail endeavor. Either a company is compliant, or it’s not and as a result there is no advantage to be gained from having “diamond level” compliance. The winners will be those companies who are able to demonstrate effective compliance programs, deliver compliant actions, and quickly identify when something is not occurring as expected. The leaders will be those companies who spend the least to reach these objectives. That means spending the least on tools to achieve these objectives that consumes the least amount of time of both compliance professionals and business operators.
A great example of this is in anti-bribery and corruption compliance where leaders are monitoring transactions to proactively identify unexpected activities and patterns of behavior worthy of investigation and review. Rather than relying on samples that produce over 99% false positives, leading companies leverage automated monitoring and analysis solutions that identify the riskiest transactions and associated entities like employees, suppliers, customers, and contractors so they can be reviewed. Leveraging on demand analysis solutions that over the course of a year cost a fraction of traditional one-time audits and retrospective analyses, these companies realize a combination of cost-effectiveness, analytical efficiency, and accuracy that helps to achieve compliance at the lowest cost. As compliance requirements grow, companies that leverage on demand monitoring and analysis solutions will have an advantage relative to their peers who are not.