Following recent significant regulatory events across multiple sectors, there has been much commentary on the need to rebuild trust.
At KPMG, we find what’s ‘top-of-mind’ for organisations across a range of sectors is that they are at risk of losing the trust of their clients—and indeed, in many instances, they may have already.
The brave new world of compliance management
Organisations all over the world are seeing the need to either maintain or restore trust. Internal and external stakeholders alike are looking to compliance professionals to give them the confidence that they are meeting their obligations and doing the right thing. This is an incredibly big ask, and one that weighs heavily on many compliance professionals. Whilst it’s everyone’s responsibility, the accountability to ensure there is an effective compliance management system in place lies with the compliance function within companies.
Of course, compliance teams have always operated in challenging conditions. However, rarely have conditions amounted to anything like the current reality. Regulatory change is now a constant, rather than something that happens every couple of years. At the same time, the increasing influence of the media makes it difficult for organisations to deal quietly with their mistakes. On top of this, the volume of Royal Commission activity and its impact on compliance is unusually high. While the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has been issued, another Royal Commission into Aged Care Quality and Safety is underway, with suggestions of one now looming for the energy sector.
For those working in compliance, now is the time to be asking the tough questions. Does my compliance management system operate as it should, and does it really stack up? Many would agree that this is a critical question, and one not easily answered. Objectively assessing your compliance management system takes time—time that compliance professionals simply do not have. Proactive assessment is something that often gets pushed down the list due to more immediate and pressing compliance issues facing the organisation.
How to get a clear view of your compliance maturity
The Compliance & Conduct Team at KPMG are all too aware of this question and the challenges that come with answering it. We have been assisting our clients for over a decade to measure their compliance maturity using a proven compliance risk management methodology, based on the International Compliance Standard, to assess the effectiveness of compliance management systems.
Through understanding the challenges of compliance teams everywhere, KPMG set out to develop a digital solution that would allow our clients to rapidly and efficiently assess the effectiveness of their compliance management systems. In February this year, we launched KPMG Compliance Compass—a cloud-based application that dramatically reduces the time it takes to assess compliance management systems against the International Compliance Standard (ISO 19600). By answering a series of questions, organisations can gain insights, identify focus areas or performance gaps, and assess the effectiveness of their compliance management systems over time.
In a time of increasing public expectation and regulatory scrutiny, where trust has been lost or is at risk, it is imperative for compliance professionals to have confidence in their compliance management systems. That’s where KPMG Compliance Compass comes in. Visit compass.kpmg.com.au to experience the powerful functionality of KPMG Compliance Compass with a free one-month trial.
Tasha Manktelow - Director Regulatory Compliance - KPMG