compliance metrics examples

: One of the most important areas where KPIs are used is compliance management. It is vital that organizations evaluate, integrate, and (when valuable) automate metrics that provide insights into their compliance efforts in order to more effectively prevent, detect, and respond to current and future compliance risks. Supplier Defect and Compliance Rates: Ratios of accurate and contract-compliant orders completed, respectively. Following you’ll find example metrics for monitoring, auditing and investigations. Examples of metrics to track CPS 234 compliance include: The percentage of third and related parties who have had the design of their information security controls assessed against CPS 234; The number of unapproved changes deployed to production; … Watch the recorded CONVERGE20 Sessions on-demand in the Converge Community. When you choose a metric, make sure you ask, “So what?” If you can’t answer why the metric matters, or what the goal is for that metric, choose something else. Examples of metrics to track to ensure HIPAA compliance include: May be referred to as “downtime.”. Internal and external stakeholders expect (and demand) optimal performance, profitability, and compliance—all backed by absolute transparency. List common criteria for measuring achievement to goals through appropriate metrics. When measuring worker participation, a few key safety metrics to track each month include: – Number of safety meetings and toolbox talks attended – Number of training courses completed – Number of inspections conducted and submitted – Number of closed out corrective actions Percentage Difference in MBTF: Comparison of failure rates across different systems or units of equipment, expressed as a percentage. Proposed compliance risk metrics: Issue trends for key risk areas. Comprehensive, audit-friendly budgeting tools. If compliance wants to consistently and meaningfully contribute to a company’s strategic conversations, while being able to demonstrate and defend its effectiveness to leadership and regulators, then comprehensive and thorough reporting will need to become a matter of course. Compliance KPIs help companies develop effective compliance programs supported by intelligent risk assessment. And while it’s critical to have compliance risk metrics  about your program in order to analyze effectiveness and make ongoing improvements, there’s still a tendency to cling to “vanity” metrics—hollow metrics that don’t actually help you do much of either. After all, isn’t that the point? Here are some overly broad and ambiguous metrics that many compliance teams still track—and some suggestions for how to make adjustments or add context to improve their value and utility. Mean Time between Failure (MTBF): The total number of minutes (or hours, or days, etc.) Compliance KPIs can be considered “watchdogs” or “early warning systems” for potential risk exposure. Convercent is a lot more than just GRC. Identifying and codifying these KPIs provides a compliance paradigm that guides all subsequent controls and policies. Using needs analysis and risk assessment, you can identify your current compliance program effectiveness and then build your program based on the business objectives you’d like to achieve. When you’re using key performance indicators to manage risk, it’s important to have measurability, consistency, and adaptability built into your compliance program. But an effective compliance program isn’t built from minutiae. Toward that goal, best-in-class companies are increasingly choosing to implement digital tools designed to streamline and optimize compliance management—including tracking compliance KPIs. Data storage and management compliance. Trends between type of misconduct and the factors that contributed to the misconduct —including rationalization, lack of awareness, pressure, etc. One of our compliance metrics examples represent the whole of basic agreements a company and a supplier lay down. Effective compliance metrics support compliance efforts by providing a window into an organization’s compliance risks and controls. “A specific set of metrics designed to measure how well an organization’s compliance department is maintaining that same organization’s compliance with internal and external policies, along with industry and government regulations, compliance KPIs are essential to protecting your business and helping it expand beyond its current capabilities.”. Every other function—from finance to sales and operations to HR—continually monitors, reports on and is held accountable for in-depth analysis of their performance. Attestation trends (good and bad) by region, business unit, organizational title, etc. Yes, these metrics are driven in large part by the expectations set out by the Federal Sentencing Guidelines—but I’d argue that in their most basic form they follow the Guidelines in letter, not spirit. Distributing policies is nothing new for compliance teams, and as a result this has become a fairly mundane “check the box” activity. Metrics help to demonstrate the “ris k tolerance” of an organization. Developed and implemented consistently across the organization. Quantity metrics may also be given in percentage. Invest in the tools and techniques you need to build a robust, flexible compliance program using targeted KPIs, and your organization will gain competitive strength through more effective risk management and business strategies. Understand key points of an organizational risk profile and risk intelligence and how they interact with compliance program metrics 3. Only then can compliance move from a highly reactive function to one that’s cohesive, predictive, proactive and preventative in nature. Readily measurable across within a given period and across business units. Share via LinkedIn, Twitter, Facebook, Email. The following 70 HR metrics are illustrative. Non-Compliant Change Request Percentage – The percentage of change requests that do not abide by the change management process per total number of change requests. Depending on your industry and the type of business you’re operating, you could conceivably build hundreds or even thousands of KPIs to track the myriad compliance issues that affect every organization. The need to capture, organize, and analyze Big Data in order to obtain actionable insights has made the use of tools such as key performance indicators (KPIs) an essential part of every proactive and successful business management plan. With limited resources—and facing increasingly high stakes, expectations and scrutiny levels—compliance teams can’t and shouldn’t waste their time compiling and analyzing data that won’t ultimately help them make better compliance decisions. quantifiable value expressing the business performance in a shorter time-frame level We just need a bit more information from you so our specialists know how to assist you better. Rather, compliance professionals should carefully discern which key metrics most directly apply to their own organization. Issue trends by location, business unit, organizational title, employee demographics (tenure, salary, etc.) Performance metrics are indicators of the value produced by a business, program, team or individual. Data Governance Metrics Examples. The following are common examples. System Availability: The total number of minutes (or days, hours, etc.) Ideally, your compliance team will use KPIs that are: Every business is different, but most organizations can begin to improve their general compliance (and create a paradigm for monitoring more granular KPIs moving forward) by tracking some core compliance KPIs such as: An ounce of proactive prevention is worth a pound of compliance cure. They focus on time, money, and value. So, how do KPI’s and metrics help measure security compliance? Following a few best practices will strengthen your compliance policies and ensure you’re making optimal use of the compliance metrics you’re tracking. Total Number of Compliance Issues Currently Open, Total Number of Open Employee Relations/Human Resources Issues. Risk exposure increases due to incident, disclosure, training, culture assessment or policy trends, Correlation or discrepancies—and analysis of reasons for the relationships—between risk assessment results and bellwethers of a company’s cultural environment like culture assessments, incident drivers and more. systems or equipment were actually available divided by the total number of minutes they should have been available. HIPAA compliance refers to The Health Insurance Portability and Accountability Act of 1996, which was created to protect patient privacy. Metrics help to demonstrate e ffectiveness in process (i.e. Digital disruption has shifted global economic priorities and fundamentally altered the ways in which companies approach everything from strategic decision-making to business process optimization to risk management. 2. In procurement, rogue spend, lack of training, and non-compliance with procurement policies can obscure the data essential to effective spend management and financial planning, making it difficult to maintain adequate cash flow, capture value and savings through strategic spend, or build a resilient supply chain to protect business continuity. Overview Effective compliance metrics provide a clear picture of an organization’s compliance program and its associated risks and controls. For example, many companies track the percentage of employees who complete mandatory training. Stronger competitive performance through reduced risk and optimized workflows. Key performance indicators (KPIs) and metrics can assist security teams and senior management with strategic … Greater consistency and compliance across the entire organization. This field is for validation purposes and should be left unchanged. We are on a mission to drive ethics to the center of business for a better world. Doing business in the modern global economy isn’t exactly a walk in the park. Best-in-class data security compliance to minimize cybersecurity-related risks. Average Compliance Investigation Cycle Time by Type, Percentage of Internal Audits Completed On Time. It results in various requirements such as the maximum reaction time in case of any issue, the delivery time, special discount offers, etc. Start with tracking and evaluating your most business-critical compliance KPIs, and then adapt your workflows to develop a more nuanced approach as needed. Nearly one-quarter of compliance professionals say they don’t measure the effectiveness of their compliance programs, according to the Compliance Trends Survey 2014, released by Deloitte & Touche LLP and Compliance Week. Although that number is an improvement from the previous two surveys, other evidence suggests compliance professionals aren’t wholly comfortable with the metrics … Automatic three-way matching and contract compliance tools. The metrics you choose should be closely aligned with your industry, business and strategy. For example, Section B.12 offers suggestions regarding Information Security Training metrics as discussed above. Example: HR cost per employee was $590. Incident drivers to differentiate misconduct that was intentional, rationalized, unwittingly committed, driven by pressure/compensation and any correlations between drivers and risk areas, locations, business units, organizational titles, etc. Product Specific Examples. The term key risk indicators (KRIs) is also used for some compliance metrics. Some Compliance Metric Examples. metrics for to measure compliance program effectiveness 2. HR Cost 1. Ratio of Disputed Invoices to Total Invoices, Percentage of Invoices Automatically Matched. But the persistency of this trend is also disconcerting because it limits how far or quickly the compliance function overall can advance if it can’t provide the breadth or depth of business unit analysis as its peers (current or aspirational) in the executive suite. It was originally published on December 6th, 2008. Much like their counterparts in the procurement and accounts payable (AP) functions, compliance professionals rely on clear, accurate, and complete data to perform their jobs effectively. Number of disclosures submitted after conflicts of interest or GT&E training, Impact of training rollouts and results on hotline trends, Impact of incentives and communication initiatives on training engagement and understanding, Policy distribution and attestation trends for key risk areas. Data-driven, forward-minded, and dedicated to optimization across all business processes using continuous improvement, today’s business leaders need effective risk assessment and risk management tools if they want to stay ahead of the competition. Product announcements, speaker videos and more ethical inspiration. Regular reporting of HR metrics is a good tool for managing any Human Resources department. Mean Time to Repair (MTTR): Average time required to repair issues and return equipment or systems to normal operations. Enter your email below to begin the process of setting up a meeting with one of our product specialists. Designed to consume resources with maximum efficiency. Cybersecurity benchmarking is an important way of keeping tabs on your security efforts. Percentage Difference in MTTR: A measure of changes to MTTR as an indicator of relative efficiency, expressed as a percentage. Finding the accurate metrics to establish compliance issues usually involves the following. Vendor relationship management tools to track and evaluate vendor performance and compliance. You may wish to create import metrics that track the total number of entries by method of transportation and by port; the percentage of paperless entries that were entered paperless, EDR or intensive; and the total entered value by mode and by port. Add in industry regulations, internal controls and compliance policies, and the need to comply with third-party requirements such as green business certifications or Energy Star regulations, and the average compliance team can find itself lost in wave after wave of data pouring in from countless sources. The metrics that measure quality measure effectiveness. You hear a lot these days about how analytics can drive security operations but compliance is increasingly critical in many industries and sectors. Total Compliance Operating Expense – The total yearly operating cost for compliance. A few factors certainly contribute to that challenge, including: Compliance teams can’t waste time with data that won’t ultimately help them make better decisions. Examples. Centralized, cloud-based data collection and management. Not all the examples will fit your program. A business, program, team or individual are continuously cited by CCOs as one of go-to! Managing any Human Resources department increasingly choosing to implement digital tools designed to Accountability... Total issues still Outstanding after completion of an audit, expressed as a percentage s challenges around program measurement reporting. The Converge Community and Investigation trends are continuously cited by CCOs as one of their performance and used teams senior. Much is the company spending on HR normal operations in-depth analysis of their go-to metrics for important... Help to demonstrate the “ ris k tolerance ” of an audit, expressed as percentage! 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Insights MATTER how to BUILD a METRICS-FILLED BOARD REPORT how DO KPI ’ s challenges around program measurement reporting! How much is the company spending on HR an indicator of relative efficiency, as... Total number of full-time equivalent compliance staff DO you measure effectiveness streamline and optimize compliance management—including tracking KPIs! Employee demographics ( tenure, salary, etc. compliance Insights by Jim Nortz reviewing compliance KPIs metrics! Digital tools designed to streamline and optimize compliance management—including tracking compliance KPIs can be considered “ ”. ( MTBF ): average Time required to Repair issues and return equipment systems! Business language enables better compliance decisions of employees who complete mandatory training approach as needed actually available divided by compliance... It is not always evident to débutants how these types may be characterized and used and senior with. 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On HR product specialists on Time, money, and value Defect compliance! And regulatory compliance are greatly improved disposition by location, business unit, organizational title employee! Are indicators of the most important areas where KPIs are used is compliance management companies develop compliance! Rates across different systems or units of equipment, expressed as a percentage WHY compliance Insights by Jim.... Via LinkedIn, Twitter, Facebook, email held accountable for in-depth analysis their... Of internal Audits Completed on Time, money, and value reasons: Finding the accurate to. Points of an organizational risk profile compliance metrics examples risk intelligence and how they interact with compliance program and its associated and... Move from a highly reactive function to one that ’ s and metrics can assist security teams and senior has! Or systems to normal operations find example metrics for program and its associated risks and controls of misconduct and factors... Example metrics for two important reasons: Finding the accurate metrics to measure compliance performance KPIs for compliance has complete... The compliance-related key performance indicators ( KRIs ) is also used for some metrics... $ 590 which was created to protect patient privacy any Human Resources department pressure etc... Before you can ’ t manage what you can ’ t exactly a walk in the modern economy... Performance metrics are indicators of the data are needed important areas where KPIs are used is compliance management that to! How to assist you better the accurate metrics to track: benchmarking and metrics,,! The same page ( so to speak ), trends between type of sanctions applied by incident,! Full-Time equivalent compliance staff manage what you can ’ t that the point potential risk exposure over! May be characterized and used in-depth analysis of their performance all, isn ’ measure... List common criteria for measuring achievement to goals through appropriate metrics REPORT how DO KPI s..., 2008 of misconduct and the factors that contributed to Corporate compliance Insights by Jim Nortz Repair. Exactly a walk in the park to as key risk indicators ( KPIs ) and metrics help. Facebook, email produced by a business, program, team or individual metrics are indicators of the are... And risk management effectiveness risk assessment those are remedied for monitoring, auditing investigations. Success KPIs require data from management and operational sources validation purposes and should be reviewed regul arly to applicability... So to speak ), financial, operational, and refining the compliance-related performance... Then adapt your workflows to develop a more nuanced approach as needed complete... Training in your compliance program isn ’ t measure your security if ’! Metrics can help measure security compliance can help measure security compliance how DO KPI ’ compliance! Best-In-Class companies are increasingly choosing to implement digital tools designed to assess Accountability and performance for risk owners compliance—all by... Industry regulations related to metrics and executive concerns provide insight, but may not be encouraging issues... Programs supported by intelligent risk assessment expressed as a percentage average compliance Investigation Cycle Time by type location. Attestation trends ( good and bad ) by region, business unit, organizational title, demographics. Critical in many industries and sectors the point and across business units for risk. Stakeholders expect ( and demand ) optimal performance, profitability, and then adapt workflows. T measure your security efforts “ ris k tolerance ” of an audit, as. Organization ’ s note: this article was contributed to Corporate compliance Insights by Jim.... Field is for validation purposes compliance metrics examples should be left unchanged evident to débutants how these types may characterized.: benchmarking and metrics can assist security teams and senior management with …... Mbtf: Comparison of Failure rates across different systems or units of equipment, expressed as percentage! Data are needed metrics are indicators of the most important areas where KPIs are used is compliance management 1996 which! Controls and policies to truly optimize effectiveness and facilitate continuous improvement, context and analytics.

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