Tougher enforcement against multinational corporations is seriously challenging assumptions about the adequacy of adopting a ‘tick-the-box’ piecemeal approach to compliance. With the industry also increasingly encouraging the commoditisation of various compliance products and services, it is more important than ever that compliance professionals seek holistic solutions.
While many companies have realised that a ‘tick-the-box’ compliance model is not particularly effective, there is still a tendency to react to compliance risks in silos and not pause, step back, and try to identify the root cause of a problem. There is also a rush to roll out temporary ‘fixes’ to deal with compliance risks without really thinking about whether they are the right long-term solutions for that risk. In many cases these solutions will do what they need to do, but they may not address a broader set of compliance risks and therefore may not be sustainable over the long term.