Using Data Analytics to Measure the Effectiveness of Your Compliance Program: Concrete Examples of Using Metrics and KPIs to Evaluate Risk Detection and Compliance Red Flags

November 29, 2022 2:30pm

Ally Bandoian
Resolution Economics

Zachary N. Coseglia
Managing Principal and Head of Innovation
R&G Insights Lab

Carl Hahn
VP and Chief Compliance Officer
Northrop Grumman Corporation

Recent DOJ guidance stresses to companies the importance of leveraging data analytics and other objective evidence to demonstrate a compliance program is working effectively and manages its compliance risks. As such, metrics-driven solutions are needed to align compliance accountability; and embed a proactive compliance function on the first line of defense.

By utilizing compliance metrics to identify corruption risks early, companies are in a better position to reduce risks and understand whether the correct controls are in place.

Key Takeaways:

  • The importance of tracking the numbers at regular intervals, and keeping records over an extended time period; in order to have a firm grasp on trends, and the ability to compare where you are now versus where you started
  • Determining which compliance metrics to measure, and comparing them to industry standards and benchmarks for improved predictability
  • Assembling qualitative data-gathering tools – such as surveys and questionnaires – to encourage adaptability  and accountability 
  • Concrete examples of metrics used for assessing and analyzing risk