A Compliance ROI is the foundational component of Compliance as a Competitive Advantage, and like any new initiative, it requires a shift in perspective and focus. It requires a shift in emphasis away from one-day-at-a-time responsiveness towards building sustainable processes that also contribute to the business bottom-line. Federal authorities already recognize this value. The U.S. Department of Justice (“DoJ”) routinely instructs federal and state prosecutors to gauge the proactiveness and sustainability of a given firm’s compliance program when a violation is detected or reported. As the recently updated DoJ Guidance on Corporate Compliance Programs makes clear, the more sustainably a business is governed, the less likely it will be required to spend on fines and remediation.* Compliance programs can effectively demonstrate their ROI by mitigating such risks.
An organization’s routine compliance functions such as training, testing and the quarterly/annual reporting can serve as prime opportunities for evidencing a Compliance ROI.
But as the DoJ’s evaluation reminds us, this assessment should be ongoing so your compliance program is not static. Compliance issues, such as a cyberattack, can arise quickly. Internalizing Triple-Bottom Line Compliance means stretching any response above and beyond what is expected with a protection-only approach and applying new visions to find business benefits and operational efficiencies as well. That vision should be spearheaded by you, but fortified by experts and allies both within and without your organization. ROI is not only a proactive initiative, but a shared one as well.
*Further information on the DoJ guidelines can be found here.
Also consult Episode 10 of Warburton’s What’s Ethical podcast, where Craig Salm of Grayscale Investments gives valuable advice on how he delivers a ROI advising on digital assets.
Beth Haddock is the author of Triple Bottom-Line Compliance – How to Deliver Protection, Productivity and Impact. She advocates delivering sustainable compliance that increases brand protection, risk mitigation, productivity, and employee engagement.