Elevating compliance

Compliance is not just a tick-box exercise; it holds strategic importance for boards, committees and shareholders. Effective oversight of compliance programs requires transparent, concise, and actionable reporting to engender informed decision-making.

KPMG has conducted benchmarking with board representatives and shareholders to understand key trends and requirements for compliance reporting in 2024. Feedback provided emphasized the importance of compliance reporting impactful, thematic issues supported by case studies and quantitative and qualitative data points. An effective internal reporting mechanism is paramount for providing visibility over regulatory and compliance matters. Compliance should consider augmenting their current reporting based on insights provided by board and shareholder representatives, considering, among others, the following areas:

• Visualize data points through dashboarding. Embrace data-driven reporting tools to streamline data collection, analysis, and visualization. Interactive dashboards and clear infographics can enhance reader comprehension and engagement.
• Provide context to demonstrate the significance of data points and, if possible, provide benchmarking or comparative analysis from other organizations or industries.
• Collaborate with departments across your organization to provide a holistic representation of risks (such as those in Human Resources, Internal Audit, or other risk functions). 
• Highlight areas of significant change, trends or hot spots for the organization, focusing on actionable insights.

•  Robust internal reporting mechanisms ensure regular updates on compliance, supporting strategic and operational decisions through structured oversight.
• This promotes management's efforts to foster an ethical culture and maintains high standards of legal and ethical behavior within the organization.
• Evaluating responses to non-compliance incidents reveals the organization’s adaptability and effectiveness in maintaining compliance standards.

• Ensure there is a secure and confidential whistleblowing reporting channel for employees to provide accurate reporting. 
• Conduct regular reviews of fraud and bribery controls to protect the organization from potential financial and reputational damage and highlight key matters.
• Assess whether the organization has a regularly updated inventory of regulatory bodies and laws and regulations applicable to their operations. 
• Ensure action is taken concerning material compliance breaches reported.