Business owners and compliance officers must be date-driven when developing compliance programs. This means they must identify compliance metrics to assess the compliance training’s performance, tracking such metrics diligently. But what are the top metrics that will provide the most insights?
Whether it’s topics regarding cybersecurity learning or anti-harassment, there are crucial metrics to measure to ensure their program is effective. Read on to find out what they are.
About Compliance Metrics
Compliance metrics are measurements indicating how well a compliance program is currently operating. These are crucial as the annals of misconduct are filled with scandals where the companies in question had something looking like a compliance program but were ineffective. As a result, companies with ineffective compliance programs are at greater risk of remediation costs and monetary fines.
These metrics will show you what works (and doesn’t) in a compliance program. That way, you can set your compliance program up for success and reap the benefits it offers in the long run.
Now that you know more about compliance metrics, here are the crucial compliance metrics to measure:
- Mean Time to Issue Discovery
This crucial metric will give you an idea of how quickly a program would discover compliance issues. You can calculate this by adding the total issue discovery times and dividing the sum by the total number of incidents. This will give you the mean time to issue discovery.
There’s a challenge to calculating this number, though. You must need to first know all the issue discovery times, such as the gap between an incident that began and when the compliance department discovered it. Part of the investigation process must ensure you are aware of when the issue first started, which you can discover through interviews and data forensics.
This metric will also help you learn if you have a strong speak-up culture and appropriate data monitoring capabilities to discover issues as they happen.
- Mean Time to Issue Resolution
This is a helpful metric related to the mean time to issue discovery. The mean time issue resolution will help you understand how quickly a program can resolve an issue after the problem was discovered. You would calculate this metric similar to the one above. Add the total time for all issues to be resolved, dividing the sum by the total number of issues.
Be wary about combining too many issues into one number as this can make important information about specific issues vague. Track the mean time for issue resolution by every kind of issue to avoid losing this crucial insight.
- Compliance Expense Per Issue
You can calculate the compliance expense per issue by dividing the total compliance budget by how many issues the program manages. You can calculate this every quarter or yearly. This metric can help people understand why specific issues cost more to solve compared to others. Moreover, you will understand the solutions that make the most sense.
Wrapping It Up
Make sure you begin measuring these compliance metrics now!