Modest increases in compliance investments and efforts during COVID-19

Responses show that, overall, compliance teams experienced a slight uptick in budgets, headcount and compliance activities during the COVID-19 pandemic.

Respondents were more than twice as likely to report an increase in compliance budgets than a decrease (31% versus 13%).

Companies were more likely to report an increase in compliance escalations (25%) than a decrease (15%).

Respondents were twice as likely to increase compliance headcount (22%) as decrease it (11%) during this period.

Consistent with these findings, four in ten respondents stated that they increased compliance communications and training during COVID-19.

View full image: In your opinion, how has remote working during the COVID-19 pandemic affected... (PDF)

Compliance escalations increased for small and medium-sized companies during COVID-19—and declined for the largest companies

The greatest decline in escalations occurred at companies with more than 50,000 employees. While respondents were more likely to report an increase in compliance escalations than a decrease, the trend was reversed for the largest companies. One in four respondents with more than 50,000 employees reported a moderate or significant decrease (26%) in compliance escalations during the COVID-19 pandemic.

Similarly, more than 50% of companies that regularly receive high escalation volumes (i.e., 500+ escalations per year) stated that they experienced a decline in compliance escalations.

Compliance teams at these companies may wish to explore whether these declines were related to a general decrease in high-risk activities during the COVID-19 pandemic and/or whether remote working may have caused an underreporting of compliance issues, which, in turn, could inform thinking about remote work policies going forward.

View full image: How has remote working during the COVID-19 pandemic affected compliance escalations volume? (PDF)

Dedicated compliance headcount remains lean at small and mid-sized companies

A majority of respondents (58%) reported having fewer than 20 dedicated Compliance and Ethics staff.

55% of companies with between 10,000 and 50,000 employees reported having fewer than 20 dedicated compliance personnel.

More than two in ten (21%) companies with more than 50,000 employees reported having fewer than 20 dedicated compliance personnel. This would suggest a maximum ratio of 2,500 employees per single member of the Compliance and Ethics function.

View full image: Excluding internal audit, how many people in your company are responsible for carrying out the Compliance and Ethics function? (PDF)

Companies anticipate expanding the use of remote technologies for internal investigations over the next 12 months

COVID-19 normalized remote interview/meeting practices that were episodic before the pandemic. Before February 2020, only 30% of respondents conducted most or all interviews remotely, and 13% of respondents conducted most or all meetings with government authorities remotely.

February 2020 – August 2022: 74% of respondents conducted most or all interviews remotely, and 48% of respondents conducted most or all meetings with government authorities remotely.

Next 12 months: 62% of respondents anticipate conducting most or all interviews remotely, and 38% of respondents anticipate conducting most or all meetings with government authorities remotely.

View full image: In internal investigations, what percentage of the following activities were/will be conducted remotely in the following time periods? (PDF)

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