Across industries, corporate compliance staffing and budgets are increasing. Almost half of respondents saw staffing levels rise, and only 6% saw their budgets cut. Companies in heavily regulated industries were more likely to see staffing rise, but we saw increases in less regulated companies also. This could reflect the growing complexity and global nature of business, which is bringing new regulatory requirements to many companies.
Staff size varies by sector: while 53% of those in heavily regulated industries have more than five FTEs focused on compliance, 59% of those in less regulated companies have five are fewer. Similar trends held true for budgets.
It’s worth noting that 17% of respondents in less regulated industries have no separate compliance budgets. We expect this percentage to decline as business becomes more complex and there’s greater focus on transparency and understanding compliance costs.
As compliance evolves, we encourage CCOs to build cross-functional teams that include members with business, industry, and functional experience as well as data analytics expertise. In our observation, such teams are more efficient and effective.