During the Financial Services Royal Commission (FSRC) and since publication of the final report in February 2019, there has been an increased focus on risk and compliance teams and the work they do. Although the spotlight has been predominantly on financial services, many other sectors have since looked for lessons to learn from the FSRC. In response, and in particular, to address the recommendations of the FSRC and subsequent legislative change, risk and compliance teams took on large programs of work to facilitate the implementation of required change . In 2020, in conjunction with the Governance, Risk & Compliance Institute (GRCI), Deloitte released its first State of Compliance Survey to seek to understand how risk and compliance teams were responding to the challenges and to capture a snapshot of sentiment and culture.
In late 2022, Deloitte ran our third annual State of Compliance Survey in conjunction with the annual GRCI conference to obtain a contemporary understanding of how Australian based organisations are managing their compliance requirements and challenges. This time we took the opportunity to include inputs received via interviews with several senior compliance professionals from industry. We had a strong response rate from those invited to participate and the data also enabled us to draw interesting insights from this year's survey when compared to previous years.
The results highlight that the integration of a Compliance Risk Management framework with the business (1st line) is ongoing, but there remains more to be done. In the effort to address future challenges, compliance professionals continue to be stretched. The focus now is not only on clearly defined compliance activities, but also in understanding where there are skill gaps and determining whether those can be filled by the rebalancing of teams with appropriately skilled staff, as well as prioritising competing compliance demands. In addition, many Compliance teams are redefining their roles and moving on from purely oversight functions to focusing on advising and partnering with the businesses to manage obligations.
Traditionally, this survey provides insight on current emerging themes and trends and the varied approaches that organisations are taking to meet the emerging challenges. Cyber-attacks have become more apparent following major cyber-attacks observed in Australia and is therefore no surprise that respondents of the survey indicated that cyber resilience is one of the critical challenges that they must face.
To see the full results of the 2022 survey please download a copy here.