65 percent of banking and capital markets firms will increase their investment in compliance risk management at 10 percent or more over the next two years to maintain and expand the stature compliance, an Accenture study said.
According to Accenture’s new study, despite these investments, compliance organizations fall short of their own expectations, creating the need for efforts to raise the status of compliance within their organizations.
Sixty percent of the 100 respondents said they need a stronger compliance culture, said Accenture in its study called Compliance’s Seat at the Table – Hard to Earn, Hard to Retain.
67 percent said compliance needs to foster cooperation with their organization’s governance, and 65 percent said they need to improve regulatory relationships.
71 percent of 100 respondents confirmed that their company’s compliance management currently reports to the CEO or board of directors.
The study also revealed that compliance talent shortages are becoming a barrier to success for many companies. Thirty-four percent are looking for compliance talent to hire and 46 percent are planning to expand their compliance teams. In parallel, many are investing in training to improve compliance skill sets.
85 percent of respondents reported that integration of new hires is generally successful but attrition rates are high.
51 percent engaged professional recruiters and head-hunting firms to help them identify and make competitive offers to fill out their compliance management teams.
Accenture suggests that more may need to be done to encourage compliance risk management professionals to make longer-term investments in their institutions.
Compliance executives most frequently said they are already investing in analytics and risk modeling (53 percent). Furthermore, the majority of respondents are assessing, planning or already investing in governance and oversight (91 percent); data quality, management and architecture (89 percent); and their compliance organization structure (88 percent).
Although 68 percent of the compliance programs represented in the study are no more than five years old, many are reaching for the next rung with investments in performance measurement that could help them evaluate and deliver evidence of their compliance management results.
picture source: thehindubusinessline