In a world of stringent regulations and evolving rules, compliance ensures organizations walk the tightrope of legal and ethical standards. Compliance KPIs, in this scenario, are not just metrics but the very lifelines that ensure a company's longevity and trustworthiness in the marketplace.
Decoding Compliance KPIs
KPIs in compliance function as the eyes and ears of an organization. They measure adherence to regulatory requirements, provide insights on potential vulnerabilities, and offer direction for improvement and adaptation in an ever-changing regulatory landscape.
Significance of Compliance KPIs
Beyond avoiding penalties, strong compliance practices backed by KPIs elevate a brand's credibility. They reflect an organization's commitment to operate ethically, safeguarding stakeholder interests and building long-lasting customer trust.
Aligning Compliance KPIs with Organizational Needs
It's not just about having KPIs, but about having the right ones. While regulatory adherence is paramount, aligning KPIs with organizational ethos, industry practices, and stakeholder expectations can maximize their effectiveness.
Most Popular Compliance KPIs for 2023
Discover the compliance KPIs that users have upvoted the most. Dive into each one to learn how they're calculated.
Measures the percentage of employees who have completed their annual compliance training. Ensuring that employees undergo regular training helps in maintaining and improving their awareness of compliance requirements.
(Number of employees who completed training / Total number of employees) x 100
If 900 out of 1,000 employees complete their annual training, the rate is 90%.
This KPI measures the average time taken to respond to an incident once it's detected. Quick response times can mitigate damage and prevent further risks.
Total time to respond to all incidents / Number of incidents
If 4 incidents took a total of 160 minutes to respond to, the mean time would be 40 minutes.
Counts the total number of risks identified within a specified period. Knowing the number of identified risks gives an organization a baseline for prioritizing and mitigating them.
Count of risks logged in the risk management system
If 20 new risks are identified in the first quarter, the KPI would be 20.
Evaluates the percentage of processes that have current and accurate documentation. Updated documentation ensures clarity, proper adherence, and minimal room for operational errors or misunderstandings.
(Number of processes with updated documentation / Total number of processes) x 100
If 80 out of 100 processes have current documentation, the rate is 80%.
Quantifies the portion of all operational processes within an organization that have associated documented procedures. Ensuring that processes are well-documented helps in standardizing operations, providing clear guidelines to employees, and ensuring regulatory compliance.
(Number of processes with documented procedures / Total number of processes) x 100
If an organization has 80 processes documented out of a total of 100, the percentage is 80%.
Comprehensive List of Compliance KPIs
Below is an extensive list of compliance KPIs, each accompanied by a brief summary. Click on any KPI to delve into its detailed description, including the formula and examples.
Access & Data Management
- Data Breaches Involving Sensitive Data: Counts the number of data breaches where sensitive or confidential data was exposed.
- Frequency of Data Backups: Indicates how often data backups are conducted.
- GDPR, CCPA, and other Data Requests Processed Within the Time Frame: Measures the percentage of data requests under regulations like GDPR or CCPA that are processed within the stipulated time frame.
- Rate of Data Access Reviews Completed: Calculates the percentage of planned data access reviews that have been completed.
- Rate of Data Stored Encrypted: Indicates the percentage of the organization's data that is stored in an encrypted form.
- Rate of Successful Data Restoration Tests: Measures the percentage of tests where data was successfully restored from backups.
- Unauthorized Access Attempts Detected: Measures the number of detected attempts to access systems, applications, or data without the necessary authorization.
Continuous Monitoring & Documentation
- Frequency of Documentation Reviews vs Set Schedule: Measures how often documentation is reviewed compared to the organization's predefined schedule.
- Non-Compliance Issues Detected Through Monitoring: The number of non-compliance issues identified via continuous monitoring systems.
- Rate of Processes with Up-to-Date Documentation: Evaluates the percentage of processes that have current and accurate documentation.
- System Changes Made Without Documentation Updates: Tracks the number of changes made to systems or processes without a corresponding update in the documentation.
- Time Taken to Update Documentation Post Process Changes: The average time taken to update existing documentation after changes in processes.
- Uptime Percentage of Critical Monitoring Systems: The operational uptime of essential monitoring systems in place to ensure compliance.
Policy & Procedure Adherence
- Average Time to Do One Audit: Measures the average duration taken to complete a single audit.
- Non-compliance Findings in Internal Audits: Counts the number of instances or findings where the organization did not meet the required standards during internal audits.
- Percentage of Processes With Documented Procedures: Quantifies the portion of all operational processes within an organization that have associated documented procedures.
- Rate of Annual Policy Updates and Revisions: Tracks the portion of policies that have been updated or revised over a year.
- Rate of Employees Who’ve Read and Signed Compliance Policies: Tracks the portion of employees who've acknowledged reading and understanding compliance policies.
- Rate of Policy Violations or Breaches: Tracks how frequently policy violations or breaches occur within a set period.
- Time Taken to Close Audit Findings: Measures the average time it takes to address and resolve issues identified during audits, in days.
- Total Audit Cost per Year: Quantifies the overall cost associated with conducting audits over a year.
Risk & Incident Management
- Mean Time to Detect Incidents: Measures the average time it takes to detect an incident after it has occurred.
- Mean Time to Respond to Incidents: This KPI measures the average time taken to respond to an incident once it's detected.
- Number of Identified Risks: Counts the total number of risks identified within a specified period.
- Number of Incidents Resolved vs Reported: Compares the number of resolved incidents to those that have been reported.
- Number of Security Incidents Reported: Tracks the number of security-related incidents reported.
- Rate of Recurrence of Previously Mitigated Risks: Measures the rate at which previously mitigated risks re-emerge.
- Rate of Risks Mitigated Within a Defined Period: Measures the percentage of identified risks that have been mitigated within a set period.
- Incidents Related to Third-Party Breaches: Measures the number of security or compliance incidents that are directly linked to third-party actions or oversights.
- Rate of Third-Parties Audited Annually: Indicates the percentage of third parties that undergo an audit annually.
- Rate of Third-Party Compliance Violations: Measures the percentage of third parties that have had compliance violations in a given time frame.
- Third Parties Compliant with Desired Standards: The percentage of third parties (like suppliers, vendors, or partners) that meet the organization's compliance standards, such as ISO 27001 or SOC 2.
- Time Taken to Onboard a Third-Party: The average time it takes to do due dilligence and onboard a new third party from initial contact to full integration.
Training & Awareness
- Average Post-Training Quiz Score: Indicates the average score achieved by employees in quizzes or tests taken after their compliance training sessions.
- Employee Feedback Score on Training Effectiveness: Reflects the average score given by employees on the perceived effectiveness of the training sessions they've attended.
- Rate of Employees Who've Undergone Compliance Training Annually: Measures the percentage of employees who have completed their annual compliance training.
- Repeat Policy Violations Post-Training: Measures the number of repeated policy violations by employees after they've undergone specific training meant to address those issues.
- Reported Breaches by New Employees: Counts the number of compliance breaches or errors reported that were made by new employees.
- Training Sessions Conducted Per Year: Counts the total number of compliance training sessions held within a specified year.
In our current era where data plays a pivotal role, deciphering countless metrics may seem daunting. Yet, by harnessing the power of the correct compliance KPIs, organizations can map out a precise trajectory, fostering decisions rooted in insights that promote enduring growth. As we journey through 2023, allow these KPIs to serve as your enterprise's navigational constellations, highlighting prospects and navigating away from potential challenges.
Looking to delve into other areas of your business? Check out our extensive range of different categories where you will find KPIs and let data drive your success.