The "Managing Governance and Compliance" plan is essential for ensuring that a company adheres to legal and regulatory standards, thereby avoiding potential legal issues and enhancing operational efficiency. Metrics like Compliance Rate and Third-Party Compliance Rate help gauge adherence levels across different aspects of the business, signaling areas for improvement.
For instance, a quarterly Risk Assessment Frequency ensures timely identification of potential risks, enabling preemptive mitigation measures. Internal Audit Findings and Policy Violation Incidents further illustrate areas where internal processes can be enhanced, fostering a culture of transparency and accountability through regular audits and policy updates.
Top 5 metrics for Governance and Compliance
1. Compliance Rate
Measures the percentage of compliance with legal and regulatory requirements
What good looks like for this metric: 95% compliance
How to improve this metric:- Conduct regular compliance audits
- Implement automated compliance software
- Provide staff with compliance training
- Ensure clear documentation of policies
- Stay updated with regulatory changes
2. Risk Assessment Frequency
Tracks how often risk assessments are performed to identify and address potential issues
What good looks like for this metric: Quarterly assessments
How to improve this metric:- Schedule regular risk assessment reviews
- Involve cross-functional teams in assessments
- Adopt a risk management framework
- Use risk assessment software tools
- Prioritise risks based on impact and likelihood
3. Internal Audit Findings
Evaluates the number of issues found during internal audits
What good looks like for this metric: Less than 5 per audit
How to improve this metric:- Conduct thorough training for audit staff
- Use technology to streamline audits
- Regularly review and update audit criteria
- Encourage open communication around audit results
- Implement corrective actions promptly
4. Policy Violation Incidents
Counts the number of times company policies are violated
What good looks like for this metric: Fewer than 10 incidents annually
How to improve this metric:- Increase awareness of company policies
- Introduce stricter enforcement measures
- Provide regular training on company policies
- Encourage reporting of violations anonymously
- Review and update policies regularly
5. Third-Party Compliance Rate
Measures the extent to which third-party partners comply with company standards
What good looks like for this metric: 90% compliance
How to improve this metric:- Regularly audit third-party vendors
- Include compliance requirements in contracts
- Develop a trusted vendor program
- Provide training for third-party partners
- Monitor third-party compliance continuously
How to track Governance and Compliance metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
