Risk Management
The risk management team examines regulatory and non-regulatory risks. They also design proper solutions and procedures to prevent and address those risks.
Related: Operational Risk Manager, Risk Management Supervisor, Regulatory Compliance Specialist
- Percentage of Audit Plan Completed – The percentage of compliance audit stages accomplished during one audit versus the total number of possible stages
- Percentage of Neglected Compliance Issues – The percentage of overlooked compliance issues versus the total number of compliance issues
- Number of Insurance Regulatory Reports – The total number of insurance administrative reports generated within a determined time period (monthly/quarterly/yearly)
- Number of Compliance-Related Lawsuits – The average yearly number of lawsuits filed against the firm for compliance-related matters
- Compliance Backlog Percentage – Percentage of active compliance issues older than 28 days versus total number of active issues
- Breach of Customer Privacy Complaints – The total yearly number of confirmed complaints related to client privacy violations and client data loss
- Average Cost of Investigations – The total expenditure in all ongoing investigations during the preceding year divided by the number of investigations
- Compliance Training Hours per FTE – The average number of training hours related to compliance each full-time equivalent employee goes through
- Average Financial Statement Cost – The total expense incurred to generate financial statements divided by the number of statements generated
- Training Headcount Ratio – The total number of company-wide staff members divided by the number of training staff
- Training Time for Customer Contact – The average number of hours of training received before communicating with a client
- Number of Documents Destroyed – The average yearly number of damaged material documents
- Percentage of Compliance-Related Lawsuits ‘Won’ – The percentage of lawsuits served against the firm during the preceding year that did not bring unfavorable result (e.g. won the case, minimized costs through prompt payment) versus the total number of lawsuits
Policy Creation
The policy creation group is authorized to assess and look into risk areas and then design corporate governance, regulations, benchmarks, and workplace guidance that will reduce those known risk areas
Related: Policy Compliance Analyst, Policy Advisor, Policy Counsel, Compliance Policy Editor
- Total Legal Spending as a Percentage of Revenue – The percentage of legal spending (whether internal or external) versus the total profit for the preceding year
- Average Cost per Compliance-Related Lawsuit – The total expenses incurred on all compliance-related lawsuits against the firm during the preceding year divided by the number of lawsuits
- Number of Alerts Tracked – The average number of compliance-related alerts that are detected and revealed to the compliance team during a month
- Insurance Regulatory Report Line Items – The average number of line items in an insurance regulatory report
- Reported Compliance Violations per Employee – The number of documented compliance violations per company-wide staff member
Policy Enforcement
The policy enforcement team drafts procedures and rules to handle cases of non-compliance.
Related: Compliance Officer, Enforcement Officer, Code Enforcement Supervisor
- Total Compliance Employee Headcount – The total number of full-time equivalent compliance staff
- Total Compliance Operating Expense – The total yearly operating cost for compliance
- 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
- Percentage of Compliance Issues Handled Correctly – The percentage of compliance disputes managed properly versus the total number of compliance disputes
- External Complaints per FTE – The total number of external complaints submitted during the preceding year divided by the number of firm-wide full-time equivalent staff
- Internal Audits Frequency – The average amount of time (in days) transpired between internal audits
- Internal Complaints per FTE – The total number of internal complaints submitted during the preceding year divided by the number of firm-wide full-time equivalent staff
- Percentage of Compliant Policies Met – The percentage of client insurance policies that satisfy regulatory specifications versus the total number of policies
- Total Regulatory Compliance Expense as a Percentage of Total Revenue – The percentage of expenditure budgeted for HR administrative compliance versus the total profit for the preceding year
- Recurring Identified Improvement Opportunities – The number of growth opportunities that are duplicated across 2 or more assessments out of total growth opportunities identified
- Number of Terminated Employee User Accounts Reviewed – The total number of discharged employee user accounts audited during the preceding year to ensure separation procedure compliance
- Frequency of Policy Revisions – The average amount of time (in days) transpired between the assessment and amendment (if considered necessary) of compliance policies
- Quarterly Access Review (QAR) Completion Time – The total number of business days needed to accomplish Quarterly Access Review (QAR) from beginning to end
- Financial Non-Compliance Cost as a Percentage of Total Compliance Expense – The cost of financial non-compliance penalty accumulated as a percentage of total compliance team expenditure
- Process Improvement Recommendations – The average number of process enhancement suggested at the accomplishment of an internal compliance assessment
- Insurance Regulatory Reporting Cycle Time – The average number of calendar days needed to accomplish an insurance administrative report
- Average Rework Cost – The total cost of revising financial statements due to errors divided by the number of statements revised
- Compliance Improvement Initiatives – The total number of ongoing internal compliance enhancement during the preceding year
- Average Investigation Cycle Time – The average number of business days needed to conduct an investigation against the firm
- Security Incident Downtime – The total number of minutes of system unavailability due to a security issue or event during the year
- Number of Annual External Complaints – The average yearly number of complaints issued against the firm with external organizations
- Total HR Regulatory Compliance Expense – The total expenditure budgeted for HR administrative compliance within a year
- Total Regulatory Compliance Expense – The total expenditure budgeted for administrative compliance for the preceding year
- Projects Delayed – The total number of internal programs interrupted due to compliance concerns within a year
- Major Internal Compliance Breaches – Total number of large-scale internal compliance violation during the preceding year
- Number of Investigations – The average yearly number of ongoing investigations against the firm
- Insurance Regulatory Report Quantity – The total number of insurance administrative reports issued annually
- Number of Annual Internal Complaints – The average yearly number of complaints issued internally
Internal Audit
The internal audit group performs regular assessments of all practices to make sure that they are in compliance with the internal and external protocols pre-defined by the company.
Related: Internal Audit Manager, Director/Manager of Internal Audit, Internal Auditor
- Percentage of Improvement Opportunities Implemented – The percentage of growth opportunities that were detected in an assessment and executed within a year from the finalization of the assessment versus the total number of growth opportunities detected
- Change Request Issue Resolution Rate – The percentage of change request concerns solved due to IT compliance audit and recommendations in conformity to the change management process versus the total number of change request concerns
- 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
- Percentage of Escalated Compliance Issues – Percentage of compliance issues turned over to the compliance committee versus the total number of compliance issues
- Average Time to Implement – New Regulation – The average number of business days needed to enforce a new rule or regulation in the firm after it went through government review
- On-Time Financial Report Percentage – The percentage of financial reports filed on schedule versus the total number of financial reports filed
- Compliance Training Expense per FTE – The total amount used on compliance training for staff divided by the total number of firm-wide full-time equivalent employees
- Improper Configuration of Assets – the total number of business compliance concerns as a result of wrong distribution of assets during the preceding year
Regulatory Reporting
The regulatory reporting group establishes data collection processes then collects and submit reports for the management and government organizations.
Related: Regulatory Reporting Analyst, Regulatory Reporting Manager, Regulatory Specialist
- Percentage of Strategic Objectives Achieved – The percentage of strategic objectives accomplished within the preceding year versus the total number of strategic efforts initiated, based on the yearly management plan high-level objectives
- Total Regulatory Compliance Expense as a Percentage of Total Expense – The percentage of expenditure budgeted for HR administrative compliance versus the total operating costs for the preceding year
- Regulatory Compliance Expense per FTE – The total expenditure on providing administrative compliance during the preceding year divided by the total number of firm-wide full-time equivalent employees at the end of the year indicated
- Regulatory Report Creation Cycle Time – The average amount of time (in days) required to accumulate information, generate, and file an administrative report (categorize by report type; financial, technological, environmental)
- Regulatory Compliance Expense per Regulatory Compliance Employee – The total expenditure in offering HR administrative compliance during the preceding year divided by the total number of HR administrative compliance staff at the end of the year mentioned
- Number of Annual Securities Compliance Issues – The total number of compliance issues related to security that are reported by the compliance office during a particular year
- Financial Statement Accuracy – The percentage of financial statements submitted that do not need revision versus the total number of statements submitted
- Non-Compliance Cost Percentage – The percentage of penalties acquired for non-adherence to regulations per total compliance team expenditure
- External Training Budget per Employee – The total external training budget divided by the total number of firm-wide full-time equivalent staff
- HR Compliance Headcount Ratio – The total number of firm-wide staff divided by the number of HR compliance full-time equivalent staff
- IT Security Expense to IT Asset Value Ratio – A benchmark of total IT security expenditure related to the total value of IT resources under management
- Reporting Expense as a Percentage of Total Compliance Expense – Total administrative reporting expenditure (salary, materials, etc.) as a percentage of total compliance team expenditure
- Ratio of Firm-Wide Employees to Compliance Employees – The total number of firm-wide staff divided by the number of compliance full-time equivalent staff
- Percentage of Downtime Due to Security Incidents (by system) – The percentage of outage duration (categorized by IT system) that was due to a security violation or event
- Regulatory Reporting Expense as a Percentage of Total Expenses – The compliance administrative reporting expenditure as a percentage of total operating cost
- Internal Audit Cycle Time – The average amount of time (in days) needed to conduct a complete internal audit (categorized by audit type)
- On-Time Regulatory Compliance – The percentage of new regulations that were complied to on schedule versus the total number of new regulation during the preceding year
- Number of Compliance Personnel in HR – The total number of HR staff nominated to attend to compliance adherence
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.
These aspects form a critical part of the organization’s ability to be successful and fulfill its core function.
Real-time KPI management and tracking ensure that the Compliance Executive can ensure that employees meet the stated Key Performance Indicators as set out by the organization. Equally importantly, management can identify negative trends in the department and take action to ensure the optimal functioning of the organization.
