FloQast has published the results of Exploring Strategic Compliance: The Next Frontier, the company’s latest research initiative aimed at shedding light on the trends and challenges facing compliance teams.
A survey for the report reveals that only 16% are ready to go beyond checking a box and adopt a strategic approach to compliance. This survey further investigates the ‘how’ and ‘why’ behind this finding, exploring how organizations can move beyond traditional risk mitigation to instead adopt compliance programs that embrace a more strategic approach focused on risk navigation – otherwise known as ‘risk orchestration’.
The report highlights three distinct approaches to compliance, with strategic navigation of risk emerging as the new best practice. This approach empowers organizations to shift from merely handling risks to gaining valuable insights from them that may help steer organizational strategy. The ultimate goal is to move towards risk orchestration, an approach that helps determine when and how risk information is necessary, optimizing decision-making and maximizing outcomes.
In addition to these better business outcomes, survey data indicates that compliance teams that have adopted this strategic approach report more positive feelings of value and respect in the organization.
Other key findings include:
Struggling with administrative burdens: 47% of compliance professionals reported they were focused on finding an easier way to satisfy the legal requirements of compliance. Compliance currently feels like an administrative burden, coupled with stringent external requirements.
Compliance drives strategic insight: 80% of compliance professionals in strategic roles are focused on helping their organizations identify appropriate risks, while 79% are dedicated to providing greater visibility to senior management, highlighting the growing importance of compliance in driving strategic decision-making and risk management.
As more companies recognize that compliance is more than just a regulatory requirement but a dynamic tool for navigating risks, they can make smarter decisions about when to advance and when to hold back. With the right technology in place businesses can automate routine tasks and gain real-time insights, allowing compliance professionals to focus on strategic planning and advice. By embracing integrated risk management and continuous control capture, organizations can elevate their compliance functions from mere oversight to key strategic partners, driving both protection and growth. For this report, FloQast surveyed 104 CFOs and 341 compliance professionals in July 2024. Survey participants resided in one of three regions: North America (Canada, the United States); EMEA (Austria, Finland, Germany, Netherlands, Norway, Sweden, Switzerland, and the United Kingdom); and ANZ (Australia, New Zealand).
