By Matt Dunning, Crain News Service
CHICAGO (Aug. 23, 2013) — Monitoring employees' activities and conducting internal audits topped the list of operational compliance issues cited by small and midsize companies, according to survey data compiled by Deloitte Development L.L.C.
Nearly 55 percent of firms reporting less than $1 billion in annual revenue listed monitoring their employees' adherence to internal policies among the biggest operational issues regarding their compliance management strategies, according to Deloitte. Other top operational issues cited by small and midsize firms included conducting internal compliance audits (53 percent), policy and procedure management (47 percent), and monitoring existing third-party relationships (45 percent).
The data was derived from Deloitte's 2013 Compliance Trends Survey, released to the public last week. The survey included responses from 189 U.S.-based companies, 34 percent of which reported less than $1 billion in annual revenue in 2012. Survey results for that segment were provided to Business Insurance magazine by request.
According to Deloitte's findings, less than 13 percent of small and midsize firms have not named a chief compliance officer (CCO), compared with 16 percent of larger companies and 15 percent of survey respondents overall.
However, a greater proportion of large companies have designated the CCO as a stand-alone position, as opposed to combining their duties with another operation. Approximately 41 percent of small and midsize firms' CCO is also listed as their chief audit executive, chief risk officer or general council, compared with 32 percent of large firms and 35 percent of all survey respondents.
This report appeared in Business Insurance magazine, a Chicago-based sister publication of Tire Business.