Compliance Decentralization | Compliance Point Solutions

How are companies dealing with all of these issues? How are they trying to achieve compliance? They are implementing separate, expensive, and redundant policies and procedures across many functional areas. They are developing point solutions and manual processes across their operations. There are point solutions for financial controls, sales controls, human resources controls, audit controls, IT controls, procurement controls.

"Many organizations are taking a linear approach to compliance," said Charles Kolodgy, IDC, in a white paper. "They are looking at compliance with a regulation as a one-shot deal; they set up a solution and then move on to the next compliance issue." The expense is enormous, and companies do not even have a full understanding of how much money, how much time, and how much effort, is being expended in this effort. Add to this the fact that the responsibility for governance is spread across the corporation, among many different functional areas, which are not linked.

"Too many companies are still pursuing compliance in a reactive way. Compliance is not sufficiently integrated into business activities," stated The Economist.