Poll: What are the Biggest Corporate Compliance Risks?
More and more companies are focusing on workforce compliance – largely because they are not confident they can keep up with the continually changing environment, shifting rules, and constant influx of new people. Sound familiar? Your workforce is fluctuating every day, from multi-generational to differing locations. How do you keep a culture of compliance that can resonate with everyone so you can reduce your organization’s overall risk? Your Board and Executive Management team wonder the same thing. As a matter of fact, determining your organization’s biggest areas of risk is one of their top concerns.
A recent poll asked executives: What do you see as the biggest risk for your company?
Interestingly, the responses were across the board, with 32% citing regulatory issues as the biggest concern, 21% saying a growth-restricted economy, 15% noting a change-resistant culture, 12% worried about succession and recruiting, and 11% concerned about cybersecurity. — Cindy Kraft, the CFO Coach
The Evolving Culture of Corporate Compliance
Regardless of the specific issue, reducing your risk really starts with educating your workforce on corporate compliance. Its critical not only for your company, but for your employees. Today, your workforce wants to do the right thing because they feel like they are part of a great company. If you are not communicating the importance of this in a digestible and relatable way, you are falling on deaf ears. The “Tone at the Top” must be well-defined and communicated to enable your middle managers to become compliance advocates. With 60% of misconduct involving supervisors or top managers, your middle management must be preaching your culture of corporate compliance or you’ll open your company up to huge risk – no matter what the area of concern. Your workforce needs to understand the importance of your code of conduct and the policies and procedures in place for your organization. Reducing risk is about avoiding and preventing “rogue employee behavior.”
Turning Up Tone in the Middle
Utilizing tone in the middle is critical for an effective corporate compliance program. Learn strategies to transform your middle management into compliance advocates by leveraging the tone from the top in our white paper: Turning Up The Tone In the Middle.