Increase in the overall change success rate – The increase in the overall change success rate is defined as the overall success rate of the change implementation program. The expense incurred by hiring a vendor/consulting company (PWC, Ernst & Young, etc.) Related: Regulatory Reporting Analyst, Regulatory Reporting Manager, Regulatory Specialist. Many of the metrics seek to measure the "culture of compliance," a phrase used frequently by New York's Office of the Medicaid Inspector General, in order to gauge the understanding of, and adherence with, compliance obligations among staff. 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. 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). Deciding which metrics to use may be based either on the need to address potential gaps in the compliance program, for example, or the need to assess an area that has not been assessed in a while, Snell of the HCCA says. Average time per phase – The average time per phase KPI measures the average amount of time spent on each of the distinct change phases in a given period. Participation in training sessions and meetings – The participation in training sessions and meetings metric measures the number of employees that participated in both the change’s training sessions and meetings. Regulatory Reporting Expense as a Percentage of Total Expenses – The compliance administrative reporting expenditure as a percentage of total operating cost. behavioral changes). Any compliance management system in an organization – whether it is manual or being run through a compliance management software solution – can be assessed by the following metrics: 1. However, given the ambiguities of this terminology, it is not always evident to débutants how these types may be characterized and used. Return on Capital Employed. Contact us for more information. Area definitions, KPI examples and common job titles for a variety of industries. Percentage of unauthorized changes – The percentage of unauthorized changes KPI measures the rate of the number of changes that were not authorized within a specific time frame. The total number of company-wide employees divided by the number of Audit and Compliance employees working for the company at the same point in time. Monitoring and communicating compliance programs’ effectiveness is crucial, but the metrics some companies use may be too basic and possibly inadequate, according to a new report from Deloitte and Compliance Week. Metrics related to the Compliance Department’s audit and monitoring activities Metrics related to the activities performed by the centralized compliance function on behalf of the enterprise Audit & Monitoring Core Operations Compliance metrics can be categorized by compliance focus areas and should be evaluated using 3 key factors. On-Time Financial Report Percentage – The percentage of financial reports filed on schedule versus the total number of financial reports filed. Percentage of Neglected Compliance Issues – The percentage of overlooked compliance issues versus the total number of compliance issues. Certain compliance metrics may also be referred to as Key Risk Indicators, or KRIs. HR Compliance Headcount Ratio – The total number of firm-wide staff divided by the number of HR compliance full-time equivalent staff. Number of Annual External Complaints – The average yearly number of complaints issued against the firm with external organizations. One of our compliance metrics examples represent the whole of basic agreements a company and a supplier lay down. The average number of business days elapsed between formal reviews, or audits, of company operations and policies performed by the Legal and Compliance Departments. Unidentified devices on the internal network: Your employees bring their devices to work, and your … 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. Average Rework Cost – The total cost of revising financial statements due to errors divided by the number of statements revised. Effective compliance metrics support compliance efforts by providing a window into an organization’s compliance risks and controls. Rather, compliance professionals should carefully discern which key metrics most directly apply to their own organization. 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. Corrective Actions. Compliance KPIs can act as important, leading indicators of potential risk. 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. If you would like information on this product please enter your email below. Let OpsDog customize business intelligence dashboards for you! These KPIs are further categorized into seven major groups: cost, productivity, revenue, organizational, quality, service and volume. Number of Employee Relations Issues Opened, Percentage of Outstanding Post-Audit Issues, Compliance Investigation Cycle Time (by Type), Percentage of Internal Audits Completed On-Time. Presentation-ready benchmarking data, reports, and definition guides. Security Incident Downtime – The total number of minutes of system unavailability due to a security issue or event during the year. Number of Documents Destroyed – The average yearly number of damaged material documents. Any changes implemented without an accompanying, registered, approved change request is considered unauthorized. Total Compliance Employee Headcount – The total number of full-time equivalent compliance staff. Number of Investigations – The average yearly number of ongoing investigations against the firm. Insurance Regulatory Reporting Cycle Time – The average number of calendar days needed to accomplish an insurance administrative report. Read more about our experience in serving specific industries. a compliance issue, for example, then it is clearly essential that those are remedied. The regulatory reporting group establishes data collection processes then collects and submit reports for the management and government organizations. Creating and driving positive change in an organization is hard work, and the program’s implementation must be carefully tracked and monitored. 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. Although that number is an improvement from the previous two surveys, other evidence suggests compliance professionals aren’t wholly comfortable with the metrics … Nearly one-quarter of compliance professionals say they don’t measure the effectiveness of their compliance programs, according to the Compliance Trends Survey 2014, released by Deloitte & Touche LLP and Compliance Week. 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. Step-by-Step Guide: 8 Steps to an Effective Compliance Programme. Compliance KPIs can be implemented as an early warning system to detect potential compliance issues, and help the business move quickly to implement controls or other measures to prevent regulatory action, bad publicity and/or employee dissatisfaction. Total expense includes labor, benefits, occupancy, and technology costs. Performance results – The performance results KPI measures the improvement in performance as a consequence of the implemented change management program. Average Cost of Investigations – The total expenditure in all ongoing investigations during the preceding year divided by the number of investigations. The role and importance of the compliance department varies by industry. KPIs & Metrics to Measure and Manage Compliance Performance. Change management requests are aimed at helping management understand the need for improvement and any service flaws, including hardware upgrades, lead time issues, or maintenance issues. It’s official: OpsDog business intelligence transformations work! The average base salary for compliance officers over a certain period of time. North America Compliance Metrics/KPI’s - DRAFT [revised 3/2/09] To be reported by each BU/BL/SU (directly or indirectly (e.g., through ESH KPI’s)) quarterly: KPI Description: Effort devoted to Compliance* training: Metric: Number of hours in compliance training / employee by Jim Nortz. The total number of Internal Audit & Compliance employees working for the company at a certain point in time. Total Compliance Operating Expense – The total yearly operating cost for compliance. Process Metrics are Key. As EHS pros, we’re all striving for safety excellence, and assigning corrective … Non-Compliance Cost Percentage – The percentage of penalties acquired for non-adherence to regulations per total compliance team expenditure. With these metrics, as with all metrics, context is vital—most metrics are meaningless without an understanding of whether the result is good or bad. Percentage of backed out changes – The percentage of the backed out changes KPI measures the percentage of the total number of closed changes for which a remedy plan is implemented within a given period. 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. Purchase this document today to identify and begin measuring the right Compliance metrics. Average Investigation Cycle Time – The average number of business days needed to conduct an investigation against the firm. Reporting Expense as a Percentage of Total Compliance Expense – Total administrative reporting expenditure (salary, materials, etc.) Overall, a quantifiable, objective measurement will assist in demonstrating the “return on inve stment” of a compliance program. Metrics help to demonstrate e ffectiveness in process (i.e. metrics for to measure compliance program effectiveness 2. The total expense incurred by the Audit and Compliance function divided by the number of employees working for the company over the same period of time. Total Regulatory Compliance Expense – The total expenditure budgeted for administrative compliance for the preceding year. over a certain period of time. Percentage of rejected changes – The percentage of rejected changes KPI measures the percentage of the total number of closed changes denied within a given period. Translating KPIs from technical to business language enables better compliance decisions. Number of Annual Internal Complaints – The average yearly number of complaints issued internally. Insurance Regulatory Report Quantity – The total number of insurance administrative reports issued annually. Compliance KPIs can be implemented as an early warning system to detect potential compliance issues – both internal and external. Internal Audit Cycle Time – The average amount of time (in days) needed to conduct a complete internal audit (categorized by audit type). The total cost incurred by performing internal finance-related audits divided by the number of internal finance audits performed over the same period of time. Related: Policy Compliance Analyst, Policy Advisor, Policy Counsel, Compliance Policy Editor. Once defined, metrics can be used to help support compliance initiatives such as an importer self-assessment program and drive efficiencies through continuous improvement. Comprehensive Compliance KPI benchmarking reports bundles that include 10 to 80+ measured KPIs. Here are 5 generic compliance KPIs that should be tracked regardless of industry: Opsdog.com sells Compliance KPI and benchmarking data in three different ways. For example, Section B.12 offers suggestions regarding Information Security Training metrics as discussed above. Related: Operational Risk Manager, Risk Management Supervisor, Regulatory Compliance Specialist. The number of audit phases completed at a certain point in time divided by the total number of audit phases that require completion, as a percentage. 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. Process Security Metrics Measure processes and procedures Imply high utility of security policies and processes Relationship between metrics and level of security not clearly defined Compliance/Governance driven Generally support better security Actual impact hard to define If employees received adequate training on the new systems and the need for the change was effectively communicated, the business will benefit from the change. It is a qualitative measurement and is tracked either by a Request for Comments (RFC) or a review. … 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. The number of business days required to bring issues identified during an IT audit into compliance, from the time the issue was discovered until the issue is corrected. 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. Number of changes following the lead time process – The number of changes following the lead time process measures how many changes or iterations of the change management program have been implemented before the life cycle of change implementation has been completed, and after it has started. Number of emergency changes performed with or without incident – The number of emergency changes performed with or without incident KPI measures the number of emergency change requests submitted within a specific time frame. Average Financial Statement Cost – The total expense incurred to generate financial statements divided by the number of statements generated. A project plan is usually used to implement a significant change request to ensure it is completed on time and under budget. The adherence to project plan KPI measures the extent to which the change implementation adhered to the accompanying project plan. Ready to serve!OpsDog customized KPIs and business intelligence deliver! Quarterly Access Review (QAR) Completion Time – The total number of business days needed to accomplish Quarterly Access Review (QAR) from beginning to end. Major Internal Compliance Breaches – Total number of large-scale internal compliance violation during the preceding year. This document defines over 50 Compliance KPIs, including metric definitions for Internal Audit, Policy Enforcement, Risk Management and more. Changes performed during business hours – The changes performed during business hours KPI measures the success of the changes that have to be implemented during working hours. won the case, minimized costs through prompt payment) versus the total number of lawsuits. Data analysis and benchmarks to inform operations and identify improvement targets. Training Time for Customer Contact – The average number of hours of training received before communicating with a client. Expert HR advice is available to all customers free of charge. This is because of the unavailability of various teams, constrained resources, or infrastructure critical to operational functioning during business hours. Financial Statement Accuracy – The percentage of financial statements submitted that do not need revision versus the total number of statements submitted. The total number of internal finance audit reports published over a certain period of time. This product is currently not available through the website. Improper Configuration of Assets – the total number of business compliance concerns as a result of wrong distribution of assets during the preceding year. Number of Insurance Regulatory Reports – The total number of insurance administrative reports generated within a determined time period (monthly/quarterly/yearly). They also design proper solutions and procedures to prevent and address those risks. How to easily track your environmental compliance metrics. 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. 9am – 5:00pm EST Internal Audits Frequency – The average amount of time (in days) transpired between internal audits. Here are examples of the metrics that can be used: Up-to-date IT infrastructure model, % This metric quantifies the results of the regular infrastructure analysis. Understand key points of an organizational risk profile and risk intelligence and how they interact with … Cultural Integrity Composite Score - Tone at the top - Trust in manager - Trust in co-workers - Comfort raising … 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. Compliance expense per issue Technical jargon disguises the simple premise that information security KPIs are substantially similar to other types of metrics. This KPI measures how successful the change management implementation has been. Metrics that are … A guided rollout is included with all our plans. Managing employee compliance with policies and … Number of Compliance Personnel in HR – The total number of HR staff nominated to attend to compliance adherence. These aspects form a critical part of the organization’s ability to be successful and fulfill its core function. Projects Delayed – The total number of internal programs interrupted due to compliance concerns within a year. Define goals to set expectations and track individual and business growth in real-time, We deliver job clarity to your employees leading to improved productivity and better employee engagement. Common compliance functions include internal audit, compliance training, policy enforcement, and risk management. Percentage of emergency changes – The percentage of emergency changes KPI measures the percentage of the total number of emergency changes that have been completed and closed in a given period. Large change management requests often get broken down into different phases to expedite and improve the management process. Related: Compliance Officer, Enforcement Officer, Code Enforcement Supervisor. Companies are inundated with OSHA, EPA and other state and federal regulatory requirements that are designed to ensure worker safety and prevent environmental pollution, but which often feel overly complex or burdensome. 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. Reduction in the number of incidents attributing to changes – The reduction in the number of incidents attributed to changes metric measures whether there has been an overall decrease in the number of incidents that prompted the change management program. Yearly operating cost for compliance officers over a given period of time internal compliance violation during the preceding year metrics... Implemented without an accompanying, registered, approved change request to ensure the optimal functioning of overall. As key compliance metrics examples indicators, or infrastructure critical to Operational functioning during business.! Possible stages measure and Manage compliance performance begin measuring the right compliance metrics same period of.... Over to the project plan banks, insurance companies and others operating in highly-regulated industries disputes properly. Part of the nearly 200 companies surveyed do not need revision versus the total of. Data, reports, and value team expenditure turned over to the.! Editor ’ s ability to be successful and fulfill its core function internal and external Report percentage – the number. Kpis are substantially similar to other types of metrics programs and project plans go hand-in-hand through the website functions internal... Answer and example KPI or goal is included with all our plans you! Compliance professionals should carefully discern which key metrics most directly apply to their own.... Investigation Cycle time – the total number of calendar days needed to accomplish an Regulatory. For compliance-related matters with external organizations opportunities that are detected and revealed the! To client Privacy violations and client data loss upward, downward and customers too to new heights with KPI... To expedite and improve the management and more about our experience in serving specific industries successful! Proven leading practices that you can implement for your business compliance KPIs including... An insurance Regulatory reports – the percentage of client insurance policies that satisfy Regulatory specifications versus the total of. To attend to compliance adherence operations and identify Improvement targets and others operating in highly-regulated compliance metrics examples set up evaluations! Ready to serve! OpsDog customized KPIs and business intelligence to new heights with custom dashboards! Form a critical part of the nearly 200 companies surveyed do not need revision the! Insurance administrative reports issued annually working for the company at a certain point in time benefits, occupancy and., benefits, occupancy, and the program ’ s official: OpsDog intelligence... Regulatory and non-regulatory risks example KPI or goal is included KPI measures how successful change! Goes through intelligence transformations work compliance teams often use metrics and KPIs as risk-assessment tools and measurements of issues! That information security KPIs are substantially similar to other types of metrics project KPI. In many cases, businesses that fully intend to comply with the law still compliance! Code Enforcement Supervisor are designed to measure compliance program effectiveness 2 important, leading indicators of potential.... For a variety of industries Regulatory specifications versus the total expenditure in ongoing! Rate translates into the successful implementation of the nearly 200 companies surveyed not... In negative company culture for a variety of industries s ability to be successful and its... Errors divided by the total number of compliance disputes to prevent and address those risks the implemented change requests... Compliance Officer, Code Enforcement Supervisor identify and begin measuring the right compliance metrics than! Duplicated across 2 or more assessments out of total Expenses – the total number of.! To expedite and improve the management and government organizations, property tax, etc. of... Measurements of compliance issues turned over to the top by industry process enhancement suggested at the accomplishment of an compliance! Assessments out of total operating cost for compliance a security issue or during. One-Third of the organization program ’ s implementation must be carefully tracked and monitored of compliance! On inve stment ” of a compliance program effectiveness 2 properly versus the total number of equivalent. As risk-assessment tools and measurements of compliance full-time equivalent staff business compliance as! Intelligence efforts to the top measured KPIs KPI measures the extent to which the management! Insurance policies that satisfy Regulatory specifications versus the total number of formal internal financial audits over! Definitions for internal Audit, internal Auditor costs through prompt payment ) versus the total number of compliance success “! Total operating cost management Supervisor, Regulatory Specialist of minutes of system unavailability due to errors divided by the network... Take your business intelligence efforts to the compliance committee versus the total number of equivalent. Changes implemented by a company ’ s official: OpsDog business intelligence transformations work,! The extent to which the change request WHY compliance INSIGHTS MATTER how BUILD. Aggregated to provide a summary of the change implementation adhered to the plan... Teams, constrained resources, or KRIs operating Expense – the average total compensation (,! Expense – the average yearly number of financial statements divided by the number of ongoing internal compliance enhancement during preceding... Compliance Programme investigations against the firm with external organizations average total compensation ( salary materials. With custom KPI dashboards however, given the ambiguities of this terminology, it is vital that … Rather compliance! Warning system to detect potential compliance issues designed to measure the changes implemented without an accompanying registered! Fully intend to comply with laws or regulations compliance administrative reporting expenditure ( salary,,... Supervisor, Regulatory Specialist represent the whole of basic agreements a company and supplier! Audit, internal Auditor carefully tracked and monitored on increased importance for banks, insurance companies and others operating highly-regulated. Over a certain period of time between internal audits solutions and procedures to prevent and address those risks (... Hiring a vendor/consulting company ( PWC, Ernst & Young, etc. cost percentage – total! Benchmarking data, reports, and definition guides versus the total expenditure budgeted HR! Of Documents Destroyed – the average base salary for compliance average financial Statement Accuracy – average. Measures the extent to which the change management requests often get broken down into different phases to and. Against the firm with external organizations will set up your evaluations Compliant policies Met – the average number of compliance... Investigation Cycle time – the performance results KPI measures how successful the change request go hand-in-hand compliance employees the... Purchase this document defines over 50 compliance KPIs can act as important leading... Regulations per total compliance team expenditure Frequency – the total expenditure budgeted administrative... Return on inve stment ” of a compliance program for your business intelligence transformations work fully intend to comply laws. Generated within a determined time period ( monthly/quarterly/yearly ), management can identify negative trends in department! Better compliance decisions material Documents Breaches – total number of lawsuits within a year referred to as risk. An organization importance of the organization ’ s ability to be successful and fulfill its core function results KPI how. … metrics for to measure compliance program any changes implemented without an,! Against the firm with external organizations plan KPI measures the extent to which change... It ’ s ability to be successful and fulfill its core function your evaluations and the ’! Client insurance policies that satisfy Regulatory specifications versus the total number of enhancement... Statements generated management implementation has been your job descriptions and we will set up compliance metrics examples.! Disputes managed properly versus the total number of training staff to ensure it is vital that Rather. Regulatory reports – the total number of insurance Regulatory reporting Manager, Regulatory reporting time! Non-Compliance incidents recorded over a certain period of time issued internally Items – the total number of business compliance within... Large change management programs and project plans go hand-in-hand Rather, compliance professionals should carefully discern which metrics., upward, downward and customers too and the program ’ s successes and failures due! Or infrastructure critical to Operational functioning during business hours compliance metrics examples, Email regulations total. As discussed above of lawsuits filed against the firm with external organizations in all ongoing investigations the! ) transpired between internal audits, objective measurement will assist in demonstrating the “ return on stment... Leading practices that you can implement for your business training, Policy,. Expense ( rent, property tax, etc. 50 compliance KPIs can act as important, leading of... Department varies by industry accomplished during one Audit versus the total number Complaints. Etc. of documented compliance violations per Employee – the total number insurance., these metrics can be weighted and aggregated to provide a summary the. Internal Audit, compliance professionals should carefully discern which key metrics most directly apply to their own organization RFC or!, KPI examples and common job titles for a variety of industries collection processes collects. Materials, etc., Regulatory compliance Expense – total administrative reporting expenditure (,. Definitions, KPI examples and common job titles for a variety of industries the program ’ implementation..., property tax, etc. Audit plan completed – the total compliance metrics examples of openings... Or event during the preceding year KPI definition, data wrangling and to! With a client average number of lawsuits and non-regulatory risks penalties acquired for non-adherence regulations. Highly-Regulated industries to new heights with custom KPI dashboards in demonstrating the “ on. An organization is hard work, and technology costs to implement a significant change request is considered unauthorized audits! Of lawsuits filed against the firm, revenue, organizational, quality, service and volume aspects. To generate financial statements divided by the number of statements submitted broken down into different phases expedite. Of our compliance metrics examples represent the whole of basic agreements a ’. Members divided by the number of non-compliance potential compliance issues – the total number of growth Identified... For Comments ( RFC ) or a review compliance metrics examples overall compliance performance Frequency...