Ten policy management and compliance statistics you need to know for 2023
Compliance and policy management remains a critical activity for every organisation, particularly in regulated sectors such as financial services and healthcare. At a high-level there are many challenges associated with managing policies and reducing the risk around compliance. These remain, but increasingly policy management and compliance technology solutions like Xoralia are making a difference.
The challenges and role of technology associated with policy management are reflected in various industry statistics, some of which are truly eyebrow-raising. These numbers are useful in:
- helping compliance and digital workplace teams consider how they can overcome challenges
- feeding into useful conversations with business stakeholders
- inserting into a business case for policy management software.
In this post we've gathered ten policy management and compliance statistics for 2023 which we think you'll found interesting. These are all from authoritative sources and while most come from more recent reports, some are a little older but are still valuable.
Here's are ten policy management and compliance statistics you need to know for 2023.
1. Over 41% of organisations list updating policies and procedures as a major compliance challenge
In a survey from Metricstream, organisations were asked to list their top five compliance challenges. Among three of the top four challenges listed were "updating polices and procedures" ,"tracking employee awareness and conducting compliance awareness training" and taking a "manual approach to compliance assessments, control testing and cases", each rated by over 40% of people responding to the survey.
2. 61% of compliance functions say high levels of regulatory change have made them less effective
In Deloitte's State of Compliance Survey, 61% of internal compliance functions said that recent increases in the level of regulatory change had had an adverse impact on the function's ability to perform its role effectively. This was up from 49% in 2020.
3. Between 2011 and 2018 the cost of non-compliance increased by 45%
Although published back in 2018, a report sponsored by Globalscope shows the eye-opening increase in the cost of non-compliance between 2011 and 2018. By benchmarking multinational organisations, the report reveals that the cost of not being compliant has risen by 45%, with a dizzying average cost of $14.22 million for organisations that experience problems. It is very likely that the associated costs are even higher today.
4. The cost of non-compliance is 2.71 times the cost of being compliant
The same report also calculates that cost of being compliant by using the right tools and training is actually 2.71 times the cost of being non-compliant!
5. 51% of internal audit professionals rate compliance and regulatory matters as "high" or "very high" risk
The 2022 edition of an annual survey of internal audit professionals from the US Institute of Internal Auditors found that 51% of them believe that the area of compliance and regulation represents a "high" or "very high" risk to organisations.
6. 69% of executives don't have confidence that current policies will meet future needs
According to Ropes & Gray's Global Risk Management Report, just under 70% of executives fear that their current policies will not meet their needs in the future. Although this statistic is from 2018, it reflects a belief that policy management needs to be ongoing.
7. The global policy management software market will grow to over $3 billion by 2027
More and more organisations are choosing to use software such as Xoralia in order to help manage their policies. In fact, there is now a significant global market for policy management software that is growing at a rapid rate. Analysts Allied Market Research have forecast the global market to reach a value of $USD3.06 billion by 2027, presenting a Compound Annual Growth Rate (AGR) of 15.7% between 2020 and 2027.
8. Over two fifths of risk professionals think technology would help support compliance policy tracking
Many risk and compliance functions are leaning on technology to help them carry out their main activities, but there is always room for improvement. According to a report from ACA Group, 41% of risk and compliance professionals believe that their function would benefit from technology to support compliance policy and activity tracking.
9. 37% of organisations are not leveraging regulatory technology solutions
Compliance and regulatory functions are using Regulatory Technology ("RegTech") solutions such as Xoralia to help organisations meet their compliance obligations. However, there are a sizeable number of compliance teams who are not using RegTech. In Deloitte's State of Compliance Survey, 37% of organisations said they weren't leveraging RegTech with a further 9% saying they were unsure.
10. 95% of organizations have built or are trying to build a culture of compliance
According to Accenture's 2022 Compliance Risk Study (which is based on a survey), 95% of respondents have built or are working on building a culture of compliance throughout their organisation in order to share responsibility for compliance more widely.
Supporting compliance and policy management
The statistics show the continuing challenges around compliance and policy management, but also the positive role technology can play. Xoralia is an example of a solution that is making a real difference for compliance and digital workplace teams in helping them manage their policies by:
- Enabling all employees to find all policies clearly and simply, supporting compliance processes and creating a culture of compliance
- Reducing the manual overhead around policy management with automation, allowing busy teams to focus on more value-added work
- Reducing risk by creating one source of truth – no more duplicate and out-of-date policies
- Supporting owners to keep their policies up to date and be more accountable
- Revolutionising policy-related communications and employee attestation processes to underpin compliance.
To get an idea of how Xoralia can help you, book a free demo.