Culture of compliance term is on the rise
Recently, the Wall Street Journal published an analysis (paywall) on the use of the term “culture of compliance” across published articles, using Factiva as a datasource. As many in the Financial Services industry know, compliance as been top-of-mind for many years, but it really took the spotlight following the market collapse of 2008.
Not surprisingly, the Wall Street Journal’s research supports this notion. The publication found that “total mentions” of the term “culture of compliance” has more or less risen steadily since 2008-2009. And, in 2010, there was a significant spike in mentions which coincides with the passing of the Dodd-Frank financial reform law. See the chart below for year-by-year mentions.
The general rise in the term’s use can be, according to the Wall Street Journal, attributed to an increased focus on firm compliance culture by regulators. Many regulators have identified compliance culture as an aspect of the corporate environment that is at the root of many compliance failures. Further, Finra confirmed in their 2016 annual letter that they too will place an increased emphasis on assessing firms’ culture of compliance, indicating that firms must make compliance their core and focus on proactive, not reactive, oversight of risk and violations.
At Panalytics, we understand that compliance teams also need to be armed with the tools necessary to help instill this culture, as reactive, legacy tools and processes will no longer suffice in today’s increasingly challenging regulatory environment.