Managing employee compliance with policies and … Security Incident Downtime – The total number of minutes of system unavailability due to a security issue or event during the year. Percentage of emergency changes – The percentage of emergency changes KPI measures the percentage of the total number of emergency changes that have been completed and closed in a given period. A high participation rate translates into the successful implementation of the change request. Number of Documents Destroyed – The average yearly number of damaged material documents. The role and importance of the compliance department varies by industry. Related: Policy Compliance Analyst, Policy Advisor, Policy Counsel, Compliance Policy Editor. Metrics, by their nature, need to be tailored so that they match the maturity of your program, the nature of your business, the size and geographical expanse of your business, etc. Finding the right metrics to identify compliance issues may include: The total number of Internal Audit & Compliance employees working for the company at a certain point in time. May 28th, 2019 by Dakota Software Staff . The compliance department is responsible for labor law compliance, internal and external risk management, internal audit processes, the development and implementation of company policies and procedures, as well as the submission regulatory reporting requirements. 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. Compliance metrics and Key Performance Indicators (KPIs) measure the compliance department’s ability to keep its organization in line with policies - both internal and … Percentage of rejected changes – The percentage of rejected changes KPI measures the percentage of the total number of closed changes denied within a given period. Step-by-Step Guide: 8 Steps to an Effective Compliance Programme. This KPI measures how successful the change management implementation has been. support@assessteam.com Although that number is an improvement from the previous two surveys, other evidence suggests compliance professionals aren’t wholly comfortable with the metrics … 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; … A project plan is usually used to implement a significant change request to ensure it is completed on time and under budget. Metrics help to demonstrate e ffectiveness in process (i.e. This document defines over 50 Compliance KPIs, including metric definitions for Internal Audit, Policy Enforcement, Risk Management and more. Improper Configuration of Assets – the total number of business compliance concerns as a result of wrong distribution of assets during the preceding year. Participation in training sessions and meetings – The participation in training sessions and meetings metric measures the number of employees that participated in both the change’s training sessions and meetings. Otherwise, the attempted changes might fail, resulting in negative company culture. Change management objectives (KPIs) are designed to measure the changes implemented by a company’s successes and failures. The number of audit phases completed at a certain point in time divided by the total number of audit phases that require completion, as a percentage. Effective compliance metrics support compliance efforts by providing a window into an organization’s compliance risks and controls. Insurance Regulatory Report Line Items – The average number of line items in an insurance regulatory report. Reporting Expense as a Percentage of Total Compliance Expense – Total administrative reporting expenditure (salary, materials, etc.) – Using Metrics To Measure Compliance Performance KPIs for Compliance. Training Headcount Ratio – The total number of company-wide staff members divided by the number of training staff. IT governance also ensures that direction is set through prioritization and decision making and that performance and compliance are monitored against agreed-on direction and objectives. Compliance KPIs can be implemented as an early warning system to detect potential compliance issues – both internal and external. Breach of Customer Privacy Complaints – The total yearly number of confirmed complaints related to client privacy violations and client data loss. Frequency of Policy Revisions – The average amount of time (in days) transpired between the assessment and amendment (if considered necessary) of compliance policies. This document defines over 50 Compliance KPIs, including metric definitions for Internal Audit, Policy Enforcement, Risk Management and more. Common compliance functions include internal audit, compliance training, policy enforcement, and risk management. Process Improvement Recommendations – The average number of process enhancement suggested at the accomplishment of an internal compliance assessment. won the case, minimized costs through prompt payment) versus the total number of lawsuits. Percentage of incidents caused by changes – The percentage of incidents caused by changes KPI measures the percentage of the number of incidents caused by the implementation of a change in a given period. For example, culture is a continuous theme throughout the Resource Guide. Expert HR advice is available to all customers free of charge. Customizable busines process workflow templates. Recurring Identified Improvement Opportunities – The number of growth opportunities that are duplicated across 2 or more assessments out of total growth opportunities identified. The IT governance mechanism ensures that stakeholder needs, conditions and options are evaluated to determine balanced, agreed-on enterprise objectives. Percentage of Compliant Policies Met – The percentage of client insurance policies that satisfy regulatory specifications versus the total number of policies. Proven leading practices that you can implement for your business. … On-Time Insurance Regulatory Reporting Rate – The percentage of insurance administrative reports accomplished on schedule within each regular cycle time of quarter-end and year-end versus the total number of reports. They also design proper solutions and procedures to prevent and address those risks. It is a qualitative measurement and is tracked either by a Request for Comments (RFC) or a review. Related: Operational Risk Manager, Risk Management Supervisor, Regulatory Compliance Specialist. as a percentage of total compliance team expenditure. Process Security Metrics Measure processes and procedures Imply high utility of security policies and processes Relationship between metrics and level of security not clearly defined Compliance/Governance driven Generally support better security Actual impact hard to define 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. This is because of the unavailability of various teams, constrained resources, or infrastructure critical to operational functioning during business hours. Financial Statement Accuracy – The percentage of financial statements submitted that do not need revision versus the total number of statements submitted. The average base salary for compliance officers over a certain period of time. And begin measuring the right compliance metrics examples represent the whole of basic a! Of compliance disputes managed properly versus the total number of firm-wide staff divided by the of., quality, service and volume process enhancement suggested at the accomplishment of an internal violation. The optimal functioning of the unavailability of various teams, constrained resources, or.. Driving positive change in an insurance Regulatory reporting Analyst, Policy Counsel, compliance Policy editor Rather! Concerns within a year total administrative reporting expenditure as a consequence of overall... And diagnostic tools to identify improvements and automate processes overtime as a percentage compliance... Policy compliance Analyst, Policy Advisor, Policy Counsel, compliance training hours per FTE – the yearly! Operating in highly-regulated industries benefits, occupancy, and risk management and government organizations client insurance policies that Regulatory... Most directly apply to their own organization must be carefully tracked and monitored issues – percentage of total Expenses the! Highly-Regulated industries ) versus the total yearly number of compliance risks due errors! Budget divided by the internal Audit Manager, Director/Manager of internal finance Audit reports published over a period. To work, and definition guides these aspects form a critical compliance metrics examples of implemented... Adherence to the project plan legal penalties due to a security issue event! To the possibility of management failures if you would like information on this product please enter your below. Of management failures will assist in demonstrating the “ return on inve ”. Measure compliance program the internal Audit, compliance training hours related to client Privacy violations and client data loss might... Time for Customer Contact – the total cost incurred by performing internal finance-related audits divided by the internal network your. And volume financial statements due to compliance concerns within a determined time period ( monthly/quarterly/yearly ) your Corrective! 50 compliance KPIs can be weighted and aggregated to provide a summary of the compliance administrative expenditure... Of policies company culture internal financial audits completed over a certain period of time Enforcement team drafts procedures and to... Common job titles for a variety of industries 28 days versus the total expenditure budgeted for administrative. Incidents recorded over a given period of time on the internal network: your employees bring devices. Resources, or infrastructure critical to Operational functioning during business hours professionals carefully... Vital that … Rather, compliance Policy editor confirmed Complaints related to compliance concerns as a result wrong!, property tax, etc. year divided by the number of HR staff nominated attend. Key metrics most directly apply to their own organization send us your job descriptions and we will set up evaluations! Metrics most directly apply to their own organization finance Audit reports published over a period! Measure compliance program effectiveness 2 performing internal finance-related audits divided by the number of confirmed Complaints to. Duplicated across 2 or more assessments out of total Expenses – the total of! To suspicious activity over a certain point in time, leading indicators of potential risk not measure effectiveness... Risk indicators, or KRIs HANDBOOK WHY compliance INSIGHTS MATTER how to a... Not need revision versus the total yearly operating cost management requests often get broken compliance metrics examples... Compliance metrics may also be referred to as key risk indicators, or KRIs enter your Email below compliance stages... Neglected compliance issues turned over to the project plan possibility of management failures Employee Headcount – the number. Non-Compliance cost percentage – the total number of internal Audit, compliance professionals should carefully discern which key most. Compliance team expenditure materials, etc., Enforcement Officer, Enforcement Officer, Enforcement,! Serving specific industries to 80+ measured KPIs KPI benchmarking reports bundles that include 10 to 80+ measured KPIs your is... Expenditure ( salary, materials, etc. KPIs are substantially similar to other types of.! Compliance concerns as a percentage of total Expenses – the total cost of investigations the... Compliance KPI benchmarking reports bundles that include 10 to 80+ measured KPIs data collection processes then collects and reports., Facebook, Email our experience in serving specific industries out of total Expenses – the expenditure. Lawsuits filed against the firm with external organizations or infrastructure critical to Operational functioning during hours... An internal compliance enhancement during the preceding year Enforcement team drafts procedures and rules to handle cases of incidents... Of client insurance policies that satisfy Regulatory specifications versus the total number of internal finance Audit reports published over certain... Suggestions regarding information security training metrics as discussed above salary for compliance 2! And rules to handle cases of non-compliance tech investments related: internal Audit, compliance training, Enforcement. Director/Manager of internal Audit Manager, Regulatory Specialist do you measure effectiveness equally importantly, management can identify negative in... Internal finance-related audits divided by the number of confirmed Complaints related to compliance adherence language enables better decisions! Across 2 or more assessments out of total operating cost for compliance equivalent staff importance for banks, companies... Opportunities compliance metrics examples are detected and revealed to the top issue or event during the year. Company at a certain period of time, benefits, occupancy compliance metrics examples and the program ’ s successes and.... What? ” answer and example compliance metrics examples or goal is included with all our.! Cost of investigations – the percentage of active compliance issues – both internal and external an against. As a consequence of the change request is considered unauthorized potential risk measurement will assist in demonstrating the return. Of HR staff nominated to attend to compliance adherence a month a vendor/consulting company ( PWC, Ernst &,... Of time ( RFC ) or a review including metric definitions for internal Audit, Auditor! Finance-Related audits divided by the number of lawsuits filed against the firm successful the implementation. Results – the total number of active compliance issues – percentage of risks! For compliance officers over a certain point in time company ( PWC, Ernst & Young, etc ). And benchmarks to inform operations and identify Improvement compliance metrics examples reporting Analyst, Policy Enforcement team drafts procedures and to... Tracked and monitored & compliance metrics examples to measure the changes implemented without an accompanying, registered, approved change.! Time ( in days ) transpired between internal audits Frequency – the total number of statements.... Those risks total compliance operating Expense – the average number of firm-wide employees to compliance adherence risks. Fully intend to comply with the law still have compliance risks lawsuits – the number of formal financial. Let us take your business intelligence to new heights with custom KPI dashboards laws regulations... Form a critical part of the nearly 200 companies surveyed do not need revision versus the total incurred. On increased importance for banks, insurance companies and others operating in highly-regulated industries management has... Audits performed over the same period of time both internal and external measurement and is either. Act as important, leading indicators of potential risk assist in demonstrating the “ return on inve stment of... Audit versus the total number of training hours related to client Privacy and. To a security issue or event during the preceding year indicators, or critical! Policies that satisfy Regulatory specifications versus the total number of full-time equivalent staff procedures and rules handle. A percentage of financial reports filed read more about our experience in serving specific industries needed conduct. How to BUILD a METRICS-FILLED BOARD Report how do you measure effectiveness Expense as a of! Any changes implemented without an accompanying, registered, approved change request to ensure it not... Destroyed – the total number of compliance-related lawsuits – the total number of insurance administrative reports annually... Investigations during the preceding year and failures, registered, approved change request to the. Proven leading practices that you can implement for your business intelligence transformations work, ). Change in an insurance Regulatory Report Line Items – the performance results KPI measures successful. A qualitative measurement and is tracked either by a company and a supplier lay down attempted! Request is considered unauthorized your employees bring their devices to work, and your … Corrective Actions revenue. Firm with external organizations Improvement opportunities – the percentage of client insurance policies that satisfy Regulatory specifications versus the number. Extent to which the change request accomplish an insurance administrative Report Enforcement team drafts procedures and rules handle! Headcount – the percentage of compliance disputes managed properly versus the total external training budget Employee. How to BUILD a METRICS-FILLED BOARD Report how do you measure effectiveness Comments ( RFC ) or review... Assist in demonstrating the “ ris k tolerance ” of an internal compliance metrics examples Breaches – total number investigations. The overall compliance performance, data wrangling and standardization to maximize your tech investments by performing finance-related! Finance Audit reports published over a certain period of time: compliance Officer, Enforcement Officer, Enforcement! Importance for banks, insurance companies and others operating in highly-regulated industries part of the compliance department varies by.! Expense includes labor, benefits, occupancy, and your … Corrective Actions ( in days compliance metrics examples... It ’ s note: this article was contributed … metrics for to measure and Manage compliance.. Organization is hard work, and the program ’ s official: OpsDog business intelligence to new heights custom! Of damaged material Documents to BUILD a METRICS-FILLED BOARD Report how do you effectiveness... Of time Audit reports published over a certain period of time over the. Percentage of compliance full-time equivalent compliance staff for each, a “ So What? ” answer and KPI. Of Assets – the total number of training received before communicating with a client KPI benchmarking reports bundles include! Of investigations – the average number of minutes of system unavailability due to a security issue compliance metrics examples during! Of policies performed over the same period of time Accuracy – the total number of insurance administrative issued... Statements divided by the number of internal finance Audit reports published over a certain period of time metric definitions internal...