There are many non-financial Key Performance Indicators (KPIs) that may be relevant to your business, below we have included some of the KPIs that are commonly used to track and monitor and control Regulatory Compliance.
As with all KPIs and goals in general, ‘less is more’, so ideally you will select the handful of KPIs that are of greatest importance to the business to track and report on at top level management. The further down the organisation you go, some of the more granular KPIs are likely to be ideally for middle or junior level management and of course for staff on the ‘shop floor’.
The list below is not intended to be comprehensive; this is provided purely to help with the process of selecting those KPIs that are most relevant to your unique circumstances.
Definition: The number of internal and external compliance audits conducted within a specific period.
Importance: Regular audits ensure that the company adheres to regulatory standards and identifies areas for improvement.
Definition: The percentage of compliance audit findings that are addressed and resolved within a set timeframe.
Importance: High closure rates indicate the company’s commitment to rectifying compliance issues promptly.
Definition: The percentage of employees who have completed required regulatory compliance training.
Importance: Ensures that the workforce is knowledgeable about compliance requirements and reduces the risk of violations.
Definition: The number of compliance-related incidents reported per period.
Importance: Encourages transparency and helps identify areas that need attention to prevent future occurrences.
Definition: The time taken to comply with new regulations from the date they are announced.
Importance: Shorter times to compliance reflect the company’s agility and proactive approach to regulatory changes.
Definition: The number of incidents where the company fails to meet regulatory requirements.
Importance: Lower numbers indicate better adherence to regulations and fewer risks of fines or legal action.
Definition: The number and significance of changes required in response to new regulations.
Importance: Helps assess the company’s adaptability and readiness to implement necessary changes.
Definition: The total costs associated with maintaining regulatory compliance.
Importance: Tracking these costs helps manage the financial impact of compliance and find cost-effective solutions.
Definition: The percentage of suppliers meeting the company’s compliance standards.
Importance: Ensures that the entire supply chain adheres to regulatory requirements, reducing overall risk.
Definition: The total costs associated with maintaining regulatory compliance.
Importance: Tracking these costs helps manage the financial impact of compliance and find cost-effective solutions.
