What is top-of-mind with CCOs? – New KPMG survey
In a period of discordant and highly-sensitized public policy and intense regulatory activity, Chief Ethics and Compliance Officers (CCOs) are feeling increasing pressures from Boards and regulators. Areas of key compliance focus include: data protection/cybersecurity, consumer protection and innovative technologies. In fact, a survey of 240 CCOs from the largest Fortune 500 organizations across six industries, conducted in February/March 2023 by KPMG LLP, showed that almost three-quarters (73%) of organizations are set to bolster levels of compliance given increasing regulatory expectations and scrutiny.
“Compliance feels acute pressure to enhance - not only to be more effective and efficient - but in order to meet increasing Board and regulator expectations,” said Amy Matsuo, Principal and National Leader, Compliance Transformation & Regulatory Insights, KPMG LLP. “Technology and data analytic investment to the Ethics & Compliance function is no longer a ‘nice-to-have’, it’s a necessity to help mitigate, measure and identify risk.”
Key survey data also showed that:
1. Increasing pressures on compliance from boards and regulators
- 73% of CCOs indicated increasing regulatory expectations and scrutiny, while
- 53% said that they face pressure from Boards to enhance compliance
2. New regulatory requirements top list of looming challenges
- 43% of CCOs said that new regulatory requirements are the top compliance challenge, followed by
- 28% for data analytics/predictive modeling for compliance monitoring and risk management
3. Industry regulations top list of key compliance focus
- 45% of CCOs said that industry-specific regulations top the list of key compliance focus, followed by
- 33% for cyber/information protection
4. Sustainability/ESG compliance is in development
- 48% of CCOs said that they have not yet implemented an ESG compliance plan, while
- 56% said that enhancing the monitoring/testing of ESG metrics in the next 2 years is a top priority
5. Compliance technology & data analytics tops areas to enhance
- 53% of CCOs said that they look to enhance technology and data analytics, while
- 63% expect an increase in the technology budget
6. Accountability and talent shortages/retention top workforce worries
- 45% of CCOs said that they have expanded ethics and compliance training, while
- 56% are to increase compliance full-time equivalents (FTEs)
Amy Matsuo is the Principal and National Leader, Compliance Transformation & Regulatory Insights, at KPMG LLP. For more information on the CCO survey or to arrange an interview with Amy, please contact Andreas Marathovouniotis.
Dive into our thinking:
2023 KPMG Chief Ethics and Compliance Officers Survey
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