Other parts of this series:
Research indicates that the growth and stature of the compliance function is slowing. In this Insurance Insight of the Week video, Michael Costonis explains the challenges compliance officers face.
In our 2016 Compliance Risk Study, respondents reported that only 31 percent of compliance functions now report to the CEO—a drop of 9 percent since 2014. This is just one of several indicators that highlight the challenges facing compliance in their efforts to perform as a strategic partner to the business. The number of those reporting directly to the board of directors has also dropped, although there has been a slight increase in the number of compliance functions reporting to the head of legal who reports to the CEO. Watch this Insurance Insight of the Week video to learn more about the challenges compliance officers are facing.
Compliance faces shifts in reporting lines and other challenges
It’s a fine balance between acting as an advisor and remaining an objective control function. Indeed, 63 percent of 2016 Compliance Risk Study respondents thought that a stronger compliance role in front line processes could create a risk for the function’s independence. In my view, by improving communication of its value as a risk management function and its role within the broader enterprise-wide risk management framework, the compliance function can reverse its current downward slide—rebuilding and growing its stature within the insurance organization. Learn more:
- Download Compliance at a Crossroads: One Step Forward, Two Steps Back? (PDF).
- View other Insurance Insight of the Week videos.
- Email me to discuss how Accenture can help insurers support compliance in their efforts to manage risk.