A recent Creditsafe survey of more than 200 US legal, accounting, supply chain, and consulting professionals found that 59% "always" compromise on compliance due to business pressure, and another 16% reported doing so “frequently.”
Troublingly, 79% of respondents said they had skipped compliance checks on customers or suppliers due to existing relationships, while 43% assessed their own compliance maturity at the lowest level. It is perhaps unsurprising, then, that 50% of those surveyed admitted to missing up to 15% of violations among their clients and suppliers each year.
According to the survey, the top reason for such compliance failures is a lack of compliance leadership or direction (51%). "The companies that take a haphazard approach to compliance monitoring are often the ones that lack a strong compliance culture, leadership and direction and have a low compliance maturity," said Steve Carpenter, COO of North America at Creditsafe. "When compliance is made a top priority within a company's long-term strategy, you tend to see the compliance and risk teams being more stringent and focused on managing compliance continuously."
Join The Discussion