Survey: Only 16% of Organizations are Approaching the Next Frontier of Compliance
LOS ANGELES, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Today, FloQast, an Accounting Transformation Platform created by accountants for accountants, announced the results of Exploring Strategic Compliance: The Next Frontier, the company’s latest research initiative aimed at shedding light on the trends and challenges facing compliance teams. The survey reveals that 47% of compliance professionals are focused on simply finding a better, easier way to alleviate the burden of the legal requirements of compliance, while only 16% are ready to go beyond checking a box and adopt a strategic approach to compliance. This survey further investigates the “how” and “why” behind this discrepancy, exploring how organizations can move beyond traditional risk mitigation to instead adopt compliance programs that embrace a more strategic approach focused on risk navigation – otherwise known as “risk orchestration.”
The survey highlights a key finding: three distinct approaches to compliance, with strategic navigation of risk emerging as this new frontier. This approach empowers organizations to shift from merely handling risks to gaining valuable insights from them that may help steer organizational strategy. The ultimate goal is to move towards risk orchestration, an approach that helps determine when and how risk information is necessary, optimizing decision-making and maximizing outcomes. In addition to these better business outcomes, survey data indicates compliance teams that have adopted this strategic approach report more positive feelings of value and respect in the organization – and may even make more money.
"Today’s business environment is dynamic and competitive – we all know that much," said Mike Whitmire, CEO and co-founder of FloQast, CPA. "Trust is more important than ever, and compliance with an eye on risk is key for maintaining an ethical image in the eyes of stakeholders. Risk navigation and orchestration provide a necessary strategic approach to both pursuing and mitigating risks, that empower companies to better navigate various external factors, including the economy and different compliance environments. By structuring the compliance function to navigate risk strategically, organizations can respond effectively to all these external factors, thereby honoring that carefully placed trust."
Other key findings include:
- Struggling with Administrative Burdens: 47% of compliance professionals reported they were focused on finding an easier way to satisfy the legal requirements of compliance. Compliance currently feels like an administrative burden, coupled with stringent external requirements.
- Compliance Drives Strategic Insight: 80% of compliance professionals in strategic roles are focused on helping their organizations identify appropriate risks, while 79% are dedicated to providing greater visibility to senior management, highlighting the growing importance of compliance in driving strategic decision-making and risk management.
- Navigation has a Leg Up Over Mitigation: Strategic navigation professionals are 7 points more likely to be viewed as advisors than risk mitigation professionals.
As more companies recognize that compliance is more than just a regulatory requirement but a dynamic tool for navigating risks, they can make smarter decisions about when to advance and when to hold back. With the right technology in place, such as FloQast Compliance Management, businesses can automate routine tasks and gain real-time insights, allowing compliance professionals to focus on strategic planning and advice. By embracing integrated risk management and continuous control capture, organizations can elevate their compliance functions from mere oversight to key strategic partners, driving both protection and growth.
FloQast is committed to publishing industry research on today’s most pressing topics in the accounting and finance ecosystem. Earlier this year, FloQast released Embracing Financial Transformation: What It Is, Why Organizations Should Want It, and How to Achieve It.
For this report, FloQast surveyed 104 CFOs and 341 compliance professionals in July 2024. Survey participants resided in one of three regions: North America (Canada, the United States); EMEA (Austria, Finland, Germany, Netherlands, Norway, Sweden, Switzerland, and the United Kingdom); and ANZ (Australia, New Zealand). Explore more about the development of Exploring Strategic Compliance: The Next Frontier and its findings here.
About FloQast
FloQast, an Accounting Transformation Platform created by accountants for accountants, enables organizations to automate a variety of accounting operations. Trusted by more than
2,800 global accounting teams – including Twilio, Los Angeles Lakers, Zoom, and Snowflake – FloQast enhances the way accounting teams work, enabling customers to automate close management, account reconciliations, accounting operations, and compliance activities. With FloQast, teams can utilize the latest advancements in AI technology to manage aspects of the close, reduce their compliance burden, stay audit-ready, and improve accuracy, visibility, and collaboration overall. FloQast is consistently rated #1 across all user review sites. Learn more at FloQast.com.
Contact:
Kyle Cabodi
FloQast Director of Corporate Communications
kyle.cabodi@floqast.com
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