Federal, state and industry regulators mandate the timely and comprehensive execution of compliance risk assessments and conflicts of interest (COI) inventories. Naturally, compliance-minded professionals focus on performing due diligence and analysis of new laws and regulations these reports require. Yet merely presenting the risks, for instance, that a new global initiative or marketing campaign poses for the company can fall short. That’s where ROI assessments for compliance come in.
ROI assessments simultaneously test and enhance the effectiveness of your compliance risk assessments and COI inventories in important ways. For compliance risk assessments, ROI assessments confirm business priorities and where compliance is spending its time while proactively finding efficiencies within business processes. In addition, ROI assessments can help create or update a COI inventory or identify a plan to address conflicts of interest. With Reg BI, conflicts of interest management will continue to be scrutinized.
Compliance risk assessments also endeavor to deter fraud and corruption. Deutsche Bank’s recent KYC initiative, affecting 1000 investment bank clients, highlights the urgency to these tasks. ROI assessments can demonstrate the wisdom a pre-emptive compliance program brings to your business. They suggest models for robust anti-corruption programs which meet evolving standards and ensure that conflicts are addressed and avoided.
In the meantime, as you approach midyear, you may find Blackrock CEO Larry Fink’s letter to CEOs to be a helpful resource. Fink covers how best practices and good compliance initiatives may help with recruiting and long-term profitability.
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.