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

1. Center for Regulatory Strategies
Insights from
In Focus: Compliance Trends Survey 2013
LIFE SCIENCES VERSUS OVERALL COMPLIANCE WEEK RESPONDENTS - ROLE OF THE CCO
73% of CCOs meet with
the executive committee
at least once per quarter
60%
60% of CCOs meet with
the executive committee
at least once per quarter
Life
Sciences
73%
Overall
45%
40%
40% of CCOs report
directly to the CEO
45% of CCOs report
directly to the CEO
Re-assessing third-party relationships
80%
of life sciences companies are increasing
oversight (i.e., auditing, monitoring) with
some changes to business partners
59%
of the overall respondents are
increasing oversight (i.e., auditing,
monitoring) with some changes to
business partners
COMPLIANCE RISKS & OPERATIONS
LIFE SCIENCES COMPANIES RANKED THE FOLLOWING REGULATIONS AS THE MOST TIME/RESOURCE CONSUMING
1. Sunshine rules on physician payments
2. Foreign Corrupt Practices Act (FCPA)
3. Good Clinical Practices (GCPs)
IMPORTANCE OF A COMPLIANCE PROGRAM
LIFE SCIENCES
30%
30% of the companies reported
that compliance is perceived
as a good “value-add” function
rather than a check-the-box activity
50% of the companies reported that
the importance of compliance and
ethical conduct is not well
50%
communicated and understood
by the staff at all levels
TOP 3
METRICS LIFE SCIENCES COMPANIES
USE TO EVALUATE THE EFFECTIVENESS
OF A COMPLIANCE PROGRAM
OVERALL
41% of the companies reported
that compliance is perceived
as a good “value-add” function
rather than a check-the-box activity
41% of the companies reported that the
importance of compliance and ethical
conduct is not well communicated
and understood by the
staff at all levels
89%
67%
COMPLETION OF ANNUAL AND
NEW HIRE COMPLIANCE TRAINING
ANALYSIS OF INTERNAL
AUDIT FINDINGS
41%
41%
56%
COMPARISONS TO COMPETITORS
OR SIMILAR ORGANIZATIONS
OF THE COMPANIES THAT MEASURE THE EFFECTIVENESS OF THEIR COMPLIANCE PROGRAM,
NONE ARE ‘HIGHLY’ CONFIDENT THAT THE MEASUREMENT OF EFFECTIVENESS IS ACCURATE
EXTENDED ENTERPRISE COMPLIANCE RISKS
LIFE SCIENCES
10% of the companies are not very
confident that all ethics and compliance
risks are addressed during due diligence
in mergers and acquisitions
OVERALL
77% of the companies are
not very confident that all ethics
and compliance risks are addressed
during due diligence in mergers
and acquisitions
70
70% of life sciences companies do not have any monitoring
procedures to measure the impact that ethical conduct and
regulatory compliance might have on the company’s brand
reputation or shareholder value, while none let the marketing
department take point on this issue
45
45% of the overall respondent companies do not have any
monitoring procedures to measure the impact that ethical
conduct and regulatory compliance might have on the
company’s brand reputation or shareholder value, while 27%
let the marketing department take point on this issue
LIFE SCIENCES
20% of the companies monitor employees
use of company email to look for potential
misconduct, although 50% of these
monitor only for specific individuals when
there is an open investigation into possible
employee misconduct
OVERALL
68% of the companies monitor employees’
use of company email to look for potential
misconduct, although 53% of these
monitor only specific individuals when
there is an open investigation into possible
employee misconduct
TOOLS & TECHNOLOGY
40% OF LIFE SCIENCES COMPANIES DO NOT USE ANY PREDICTIVE MODELING TECHNIQUES
TO BETTER UNDERSTAND COMPLIANCES RISKS, MEASURE EFFECTIVENESS, OR DETERMINE
WHERE TO DEVOTE MORE COMPLIANCE RESOURCES
CONTACT
To learn more, please visit:
www.deloitte.com/us/centerregulatorystrategies/lshcleadership
About the survey
Deloitte and Compliance Week magazine collaborated to conduct a compliance
benchmarking survey. Within the survey, compliance executives were asked about their
compliance department’s organizational structure, current compliance industry risks and
operational challenges, metrics, and tools and technology.
www.deloitte.com/us/compliancetrends
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