LRN - Risk management Survey - Ethics Resource Center

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detailed resultsinvolved in investigations whenever their assistance is necessary. Here again, havingthe ethics and compliance function reach out to enlist resources and get the supportof other functions can help reduce or eliminate both these challenges.Evaluating the ethics and compliance process18. How do you formally evaluate the impact of your overall ethicsand compliance process?Evaluating the impact of the ethics and compliance processQuantitative measuresQualitative measuresInternal program / process auditsAnalysis of data correlated from all of our programsFormal assessment of our corporate cultureExternal program / process auditsWe do not evaluate our effortsOtherDo not know63%52%47%29%25%19%14%5%4%Companies most often used three approaches to measure the impact of ethics and complianceprograms. Among respondents, 63 percent reported using quantitative measures such asthe number and types of helpline calls. Another 52 percent employed qualitative measures,such as surveys of employee attitudes, and 47 percent relied on internal program and processaudits. Fewer, but still more than a quarter of respondents (29 percent), reported correlatingthe data across ethics and compliance programs. Exactly one-quarter of companies conductedformal assessments of corporate culture. External audits were the least popular method ofevaluating ethics and compliance programs; only 19 percent of respondents reported using them.Finally, 14 percent of companies did not evaluate the impact of ethics and compliance programs.The use of quantitative measures to assess the impact of ethicsand compliance programs is gaining ground.The majority of companies use quantitative measures to assess the effectiveness oftheir ethics and compliance programs, slightly more than qualitative or other measures.Further, companies use their internal resources rather than going outside to externalprogram or process audits. One item for further study is that only 29 percent ofcompanies say they correlate their collected data from their ethics and compliance riskassessments with data from other assessments in the company. However, integratingsuch other data might prove useful in strengthening the overall risk mitigation efforts.<strong>LRN</strong> | ETHICS AND COMPLIANCE RISK MANAGEMENT PRACTICES REPORT | 26
detailed resultsAlso notable is the finding that one-quarter of companies perform a formal assessmentof their corporate culture as a means to evaluate their programs. This methodologyis growing because it helps companies analyze and understand their corporate cultureon a more holistic basis, including risk assessment, work processes, employee attitudes,and many other factors that reflect the entire corporate character. This larger culturalevaluation will be a measure to track for a potential upward trend in future years. The U.S.Federal Sentencing Guidelines require companies to encourage an ethical culture, andit has become evident that doing so requires more than simply having programs in place.Companies must pay attention to and actively advance their entire culture if theyare truly to manage their ethics and compliance risks and enhance business performance.19. How often do you evaluate the impact of your overall ethics andcompliance process?Frequency of ethics and compliance process evaluationsOngoingOnce per yearOccasionally11%22%43%Never10%Quarterly5%Don’t know6%Forty-three percent of respondents reported evaluating ethics and compliance process onan ongoing basis. Only 22 percent perform a review annually, while 5 percent do quarterlyevaluations. About one in 10 companies (11 percent) reported doing only occasional evaluationswhile another one in 10 (10 percent) had no evaluations of the ethics and compliance process.Most companies evaluate their ethics and compliance process on anongoing basis or at least once per year.Seventy percent of the companies surveyed evaluate their ethics and compliance processat least annually, whether it is quarterly, ongoing, or once per year. An interestingcorrelation to other findings in this study is that the 48 percent of respondents reportingquarterly or ongoing evaluations is close to the 58 percent of respondents whoreport quarterly or on an ongoing basis to senior executives and board members abouteducation and certification progress. This suggests that a large share of companies ismaking an effort to monitor their progress in addressing risks on a fairly regular basis.<strong>LRN</strong> | ETHICS AND COMPLIANCE RISK MANAGEMENT PRACTICES REPORT | 27
Page 1 and 2: The LRN ethics and compliancerisk m
Page 3 and 4: introductionMore than ever before,
Page 5 and 6: introductionThe table below shows a
Page 7 and 8: key findings6. Detecting ethics and
Page 9 and 10: detailed results2. What types of et
Page 11 and 12: detailed results3. Who is involved
Page 13 and 14: detailed results5. How do you use o
Page 15 and 16: detailed resultsConstrained resourc
Page 17 and 18: detailed results8. To which non-emp
Page 19 and 20: detailed resultsAcross the world, c
Page 21 and 22: detailed resultsThe numerous additi
Page 23 and 24: detailed resultsCompanies often do
Page 25 and 26: detailed resultsResponding to repor
Page 27: detailed results17. What are your b
Page 31 and 32: detailed results21. What are your b
Page 33 and 34: detailed resultsCompanies are moder
Page 35 and 36: discussionThese strategies depend l
Page 37 and 38: discussionAddressing the data colle

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