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The 2013 Compliance Trends Survey suggests that compliance officers are making slow but steady progress toward the ideal of a strong, independent compliance function — although in many, but not all, industry sectors (especially the less highly regulated sectors) the size of the “typical” compliance function appears to remain relatively small in both manpower and budget dollars. For more information, visit https://www.deloitte.com/view/en_US/us/Insights/centers/center-regulatory-strategies/256ad7d579d50410VgnVCM3000003456f70aRCRD.htm
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LIFE SCIENCES VERSUS OVERALL COMPLIANCE WEEK RESPONDENTS - ROLE OF THE CCO
Re-assessing third-party relationships
COMPLIANCE RISKS & OPERATIONS
EXTENDED ENTERPRISE COMPLIANCE RISKS
TOOLS & TECHNOLOGY
IMPORTANCE OF A COMPLIANCE PROGRAM
TOP 3METRICS LIFE SCIENCES COMPANIESUSE TO EVALUATE THE EFFECTIVENESSOF A COMPLIANCE PROGRAM
30% of the companies reportedthat compliance is perceived
as a good “value-add” functionrather than a check-the-box activity
50% of the companies reported thatthe importance of compliance and
ethical conduct is not wellcommunicated and understood
by the staff at all levels
10% of the companies are not veryconfident that all ethics and compliancerisks are addressed during due diligencein mergers and acquisitions
77% of the companies arenot very confident that all ethicsand compliance risks are addressedduring due diligence in mergersand acquisitions
ANALYSIS OF INTERNALAUDIT FINDINGS
LIFE SCIENCES COMPANIES RANKED THE FOLLOWING REGULATIONS AS THE MOST TIME/RESOURCE CONSUMING
40% of CCOs reportdirectly to the CEO
60% of CCOs meet withthe executive committeeat least once per quarter
40%
60%Life
Sciences
45% of CCOs reportdirectly to the CEO
73% of CCOs meet withthe executive committeeat least once per quarter
45%
73%Overall
80%of life sciences companies are increasingoversight (i.e., auditing, monitoring) withsome changes to business partners
80%of the overall respondents areincreasing oversight (i.e., auditing,monitoring) with some changes tobusiness partners
59%59%
41% of the companies reportedthat compliance is perceivedas a good “value-add” functionrather than a check-the-box activity
41% of the companies reported that theimportance of compliance and ethicalconduct is not well communicatedand understood by thestaff at all levels
50%
89%COMPLETION OF ANNUAL ANDNEW HIRE COMPLIANCE TRAINING
COMPARISONS TO COMPETITORSOR SIMILAR ORGANIZATIONS
67% 56%
OF THE COMPANIES THAT MEASURE THE EFFECTIVENESS OF THEIR COMPLIANCE PROGRAM,NONE ARE ‘HIGHLY’ CONFIDENT THAT THE MEASUREMENT OF EFFECTIVENESS IS ACCURATE
68% of the companies monitor employees’use of company email to look for potentialmisconduct, although 53% of thesemonitor only specific individuals whenthere is an open investigation into possibleemployee misconduct
20% of the companies monitor employeesuse of company email to look for potentialmisconduct, although 50% of thesemonitor only for specific individuals whenthere is an open investigation into possibleemployee misconduct
45% of the overall respondent companies do not have anymonitoring procedures to measure the impact that ethicalconduct and regulatory compliance might have on thecompany’s brand reputation or shareholder value, while 27%let the marketing department take point on this issue
CONTACT To learn more, please visit:
www.deloitte.com/us/centerregulatorystrategies/lshcleadership
www.deloitte.com/us/compliancetrends
About the surveyDeloitte and Compliance Week magazine collaborated to conduct a compliancebenchmarking survey. Within the survey, compliance executives were asked about theircompliance department’s organizational structure, current compliance industry risks andoperational challenges, metrics, and tools and technology.
40% OF LIFE SCIENCES COMPANIES DO NOT USE ANY PREDICTIVE MODELING TECHNIQUESTO BETTER UNDERSTAND COMPLIANCES RISKS, MEASURE EFFECTIVENESS, OR DETERMINEWHERE TO DEVOTE MORE COMPLIANCE RESOURCES
70% of life sciences companies do not have any monitoringprocedures to measure the impact that ethical conduct andregulatory compliance might have on the company’s brandreputation or shareholder value, while none let the marketingdepartment take point on this issue
45
70
Insights from
In Focus: Compliance Trends Survey 2013
Center for Regulatory Strategies
LIFE SCIENCES OVERALL
1. Sunshine rules on physician payments2. Foreign Corrupt Practices Act (FCPA)3. Good Clinical Practices (GCPs)
LIFE SCIENCES
LIFE SCIENCES
OVERALL
OVERALL
30% 41%
41%
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