When it comes to keeping your business compliant in today’s ever-changing risk environment, there are a wide variety of factors to keep a watchful eye on. From internal audits and third-party risk management to becoming compliant with frameworks like SOC 2 and mitigating cyber risks — a heavy burden falls on all departments to keep the company safe and secure.
If managed well, compliance is often a topic that only rears its head when a problem arises. But for the companies that make compliance a year-round priority, the likelihood of having a huge business disruption occur is much smaller than those that treat compliance as an issue to be snuffed out once things get messy.
To help remind your team of the importance of year-round compliance for the health and security of your business, we’ve compiled a few must-know compliance statistics. We hope these shine a light on the cost of non-compliance and inspire your team to go the extra mile when it comes to following rules and regulations.
1. 70% of risk and compliance experts said the pandemic has increased their reliance on technology to improve decision making, performance monitoring, and risk management. (Thomson Reuter’s Fintech, Regtech and the Role of Compliance Report 2021)
2. Firms have identified the top five risk and compliance functions that can benefit from technology as the following:
- Vendor oversight (54%)
- Marketing reviews (41%)
- Compliance policy/activity tracking (41%)
- Trade surveillance (32%)
- Regulatory reporting (24%). (ACA Key Trends and Forces Shaping Risk and Compliance Management in 2021)
3. Cybersecurity practices among vendors are becoming an expectation, as 44% of firms say they are being asked for proof of cybersecurity as part of a request for proposal (RFP). (ACA Key Trends and Forces Shaping Risk and Compliance Management in 2021)
4. Risk and compliance programs are maturing. Navex Global found that the number of “mature and advanced” risk and compliance programs grew by 29%, while the number of “reactive and basic” ones declined by 35%. (Navex Global’s 2021 Definitive Risk & Compliance Benchmark Report)
5. 34% of organizations outsource some or all of their compliance functionality. (Thomson Reuter’s Cost of Compliance Report 2021)
6. If it were a country, U.S. regulation would be the world’s eighth-largest economy. (CEI Ten Thousand Commandments 2021)
7. When security professionals are asked how to improve their company’s security posture, the top answer is upgrading tools (67%). This is an effort that they also report is being thwarted by integration difficulties, lack of expertise, and the sheer number of tools to manage. (Netenrich’s Global 2021 Survey of IT and Security Professionals)
8. 80% of respondents say they had a business continuity plan in place and that it helped them navigate the pandemic’s impact. (Navex Global’s 2021 Definitive Risk & Compliance Benchmark Report)
9. Organizations lose an average of $4 million in revenue due to a single non-compliance event. (GlobalScape’s The True Cost of Compliance with Data Protection Regulations)
10. There has been a 45% increase in the cost of non-compliance since 2011. (Diligent Insights’ How Compliance Officers See the World in 2020)
11. 50% of organizations said they spend 6-10% of their revenue on compliance costs. (Bloomberg)
12. 31% of respondents predict their compliance teams will grow in the next 12 months, down from 43% in 2018. (Thomson Reuter’s Cost of Compliance Report 2021)
For even more compliance statistics, check out this helpful infographic from Secureframe that shares the top compliance risks that companies face today and highlights upcoming data and security regulations to keep an eye on in 2022.