A global compliance report launched today by law firm Baker McKenzie shows that compliance requires deeper integration.
'Connected Compliance: The global case for integration' surveyed over 1800 business leaders across 8 jurisdictions as part of the research, including: the United Kingdom, Canada, the United States, China and Hong Kong, Germany, Spain, and Brazil. All companies had a global turnover of at least $1.3 billion or more and respondents were asked about their approaches to compliance, as well as their concerns.
In Germany the most prominent result of the survey was that only one in five companies manages compliance in an integrated way. The recent Connected Compliance survey also showed that systematic and integrated compliance post-acquisition or post-merger integration efforts are crucial. More than half of German companies (53%) have made investments in companies with certain compliance issues known from the outset or discovered after closing (54%).
To counter these common weaknesses, we have developed the risk assessment and risk monitoring tool Compliance Cockpit. The Financial Times Innovative Lawyer award-winning Compliance Cockpit allows multinationals to collect all relevant information on the status of the compliance program and the risk exposure of a company from multiple sources. The Compliance Cockpit then automatically collates the data in a holistic database, analyzes the collected information via pre-defined algorithms and presents the results in an interactive dashboard.
"The Compliance Cockpit is a holistic risk assessment and risk monitoring tool. Our clients use it for the integrated coverage of all compliance topics on a global level. The Cockpit turns large amounts of data into smart data which enables the compliance functions and board members to make better informed decisions", comments Dr. Franz Leisch, partner and co-developer of the Compliance Cockpit in Germany.
Anahita Thoms, Partner and Head of Baker McKenzie's International Trade Group in Germany says: "Our research shows that German companies need to do much more to ensure that they have an integrated compliance offering. It's not only good business sense but, failing to adequately assess compliance liabilities exposes the business to additional risk and, in the context of M&A, may result in a higher purchase price than justified.
Further information and Connected Compliance Self-Assessment
If you are interested in learning how the Compliance Cockpit can help assess, monitor and administer compliance management systems, please follow the following link.
To assess how connected your compliance organization is compared to the other respondents of the Connected Compliance survey, please visit our online diagnostic tool.
About the Research
Baker McKenzie’s Connected Compliance report examines the compliance approaches and concerns of global multinationals. Opinion research was conducted in Autumn 2018 among: 200 respondents in the USA; 100 respondents in Canada; 200 respondents in China and Hong Kong; 100 respondents in Germany; 100 respondents in Spain and 100 respondents in Brazil. Opinion research was conducted in Autumn 2017 amongst 537 UK respondents. Study participants include a representative sample of compliance leaders (Head of Compliance, Chief Compliance Officer), growth leaders (Head of Strategy, Chief Strategy Officer, Business Development Director) and general managers (General Manager, UK Managing Director). Participating companies were drawn from the following sectors: Industrial, Consumer Goods, Energy & Infrastructure, Financial Services, Healthcare & Life Sciences, and Technology, Media & Telecoms (TMT). All companies had a turnover of at least £1bn or equivalent.