Compliance Week published an article for premium members outlining factors that contribute to the reporting lines for corporate Compliance functions[1].  This article provided intriguing data from a survey showing how company size and sector align with the reporting relationships of the Compliance function. 

Aaron Nicodemus, a respected writer, reached out and generously included a quote as part of the summary.  See below. 

Consider a company that is seeking to improve its sustainability or pursue environmental, social, and governance goals. The Sustainability Accounting Standards Board (SASB) identifies sustainability topics and their material risks in the short, medium, and long term, said Doug Hileman, a compliance consultant and president of Douglas Hileman Consulting.

“SASB’s approach to materiality aligned with that of financial reporting—it’s all about the risk of impact on financial performance,” he said. “SASB recognized that nonfinancial topics, including regulatory compliance burdens and risks, affect industries differently. Heavily regulated industries will have more, and probably more detailed, disclosure requirements around compliance than less regulated industries (e.g., pharma compared to retail). If compliance requirements pose more material financial risks, the reporting channels and governance structure around compliance might be different.” A company in the energy sector, Hileman said, might see incentives from carbon capture and storage, energy efficiencies, and other benefits to pivot its strategy to improve its financial performance. Read More