This was a great read on the Skadden blog.

The piece covers how companies now need to use more and more sophisticated data analytics as part of their compliance programs.

The piece also explains that it’s not just collating and analysing the data that’s important anymore – rather it is important for directors and board members to actually understand that data too. They must take “an active role, understanding and overseeing these data-driven compliance programs.”

The article cites some insightful research from EY too which makes for worrying reading:

  • 78% of companies do not “systemically track contractual obligations.”
  • 71% do not monitor contracts for “deviations from standard terms.”
  • Half of CEOs interviewed identified “risk management as the area in which they expect to implement the most change over the next three years”
  • 61% of CEO’s admitted they “would like their organization to take a more data-driven approach” to risk management generally.
  • 97% of general counsels report difficulty obtaining budgets for legal technology, including tools to monitor risk and compliance issues.

And the final paragraph really resonated with me, which I have copied below for you to ponder….

“No board or CEO wants to discover that the government has a better read on the company’s legal compliance than management does. Fortunately, through prosecutions and enforcement actions, sentencing laws and detailed DOJ policies, the government has given clear guidance about the need to employ data analytics, and how that information needs to be shared internally.”

As a c-suite professional, are you in touch with your data? Do you know how it works alongside your compliance structure? Now is the time to prioritise your data driven compliance approach, rather than just leaving it to the tech boffins.