Sub Prime crisis heralded a new era of sharp focus in the compliance domain. Financial institutions worldwide suffered losses of over $300 billion due to compliance-related fines and damages. Since then, compliance has become mainstream for businesses, irrespective of their scale.
With new standards and regulations popping across the globe,McKinsey's report indicates that most C-Suites still feel less confident about their control of compliance risk. The reason they say is the "Incoherence in the overall effective organizational approach and weak business ownership of compliance" (Survey, 2018).
Since 2008, institutions started investing heavily in compliance, without really seeing the desired end product, as standards and regulations need their own time to catch up with the latest business approaches. The shifting focus on "Efficiency in Compliance" has become the new norm.
The first step is to create a baseline, McKinsey's "Compliance Benchmarking" of 22 leading institutes across Asia, Europe, and North America in 2017, followed by 24 institutes in 2018 of Global Systemically important (G-SIBs) and non-G-SIBs both participating led to the following inferences.