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Compliance Key Performance Indicators (KPIs)

Importance of Tracking KPIs

Compliance metrics should show whether an organization is improving in certain elements of its compliance efforts.

Directional, Specific, and Meaningful KPIs

The following are key takeaways from tracking specific, directional, and meaningful KPIs:

  • Directional: Compliance metrics should show whether an organization is improving in certain elements of its compliance efforts.
  • Specific: The more specific a KPI, the more likely it is to be achieved.

Examples of Important Compliance KPIs

The following are examples of important compliance KPIs:

Time-Based Metrics

  • Mean Time to Issue Discovery: The time it takes to discover a compliance issue is critical for investigating and resolving problems within a reasonable timeframe.
  • Mean Time to Issue Resolution: The time it takes to resolve a compliance issue.

Cost-Based Metrics

  • Compliance Expense per Issue: The average cost of a compliance issue to the organization.

Risk-Based Metrics

  • Risk Severity Gap: Looking at the difference between predicted compliance risks that affect the company and the risks that have actually manifested over a set period of time.
  • Composite Risk Index: A way of understanding how likely a risk is to occur and the impact it would have if it did occur.

FAQs

Here are some frequently asked questions related to tracking compliance KPIs:

Measurement and Effectiveness

  • How do you measure compliance rate?
  • What makes a good compliance function?

Tools and Resources

  • How do compliance tools help?

Conclusion

Tracking compliance KPIs is essential for ensuring an organization’s compliance strategy is working effectively.

ComplyLog Suite of Tools

ComplyLog offers a suite of tools to help organizations stay compliant with key pieces of legislation and streamline their processes:

Compliance Management Solutions

  • IntegrityLog: Enables you to fulfill the requirements of the EU Whistleblowing Directive.
  • InsiderLog: Helps you automate your insider list management as per MAR.
  • TradeLog: Makes managing employee personal trading easier and faster.

By tracking compliance KPIs and utilizing these tools, organizations can ensure their compliance policies are effective and avoid potential consequences such as financial loss, reputational damage, and reduced staff morale.