PwC insights into how the compliance function is being transformed
The compliance function is undergoing profound changes. Growing regulatory demands, new technological developments and growing geopolitical uncertainties demand a response from businesses, in the form of strategic realignment. The days when compliance was purely a controlling function are far behind us, and it is now evolving into a business-critical element that ensures innovation and gives companies a competitive edge.
Our insights highlight how you can future-proof your compliance function – from digital transformation and integration into business processes, all the way up to new roles and skills. Explore our publications below to find out more about where we we stand today when it comes to compliance transformation in Germany, the German-speaking countries (DACH) and worldwide, and to understand what you need to do to actively shape this change.
In our global study, we asked 1,800 senior executives worldwide about their compliance practices and challenges, and about the evolution of their compliance functions.
Current global challenges – driven by various macroeconomic forces and crises, but also the sheer mass of global regulations – are creating an unprecedented complexity and costs for businesses. This situation has led some businesses to restructure their compliance function, and in return to become “compliance pioneers”. They have evolved their tech, processes and talent models to mitigate risks, manage costs and gain new insights. On top of this, they also managed to use their new knowledge – in the form of newly acquired data and information – to gain a strategic advantage. For other businesses, however, the growing complexity has led to management being distracted from their core tasks and valuable resources being lost, undermining trust and limiting the company’s ability to effectively pursue strategic and competitive goals.
Key results of the study
Current geopolitical crises and wars, inflation and economic uncertainty are creating huge challenges for companies in the DACH region. This situation is being exacerbated by rapidly changing regulations. How can compliance functions respond to this polycrisis, and how can they anticipate future challenges? Questions such as these are the focus of this study.
The results of this study show that we are seeing a fundamental change in the compliance function, and the underlying causes and drivers of this transformation remain critical issues. The increasingly stronger orientation of entrepreneurial actions towards risk leads to widened responsibilities of compliance officers and, as a result, triggered many other changes throughout the value chain. This study examines this compliance transformation using seven indicators.
Did we spark your interest in our Compliance Transformation 2030+ study? Then click the link below. You’ll receive a link to a short 10-minute survey. Upon completion, we’ll send you our exclusive and wide-ranging insights into the results of this study.
The majority of companies worldwide see cybersecurity regulations as an opportunity. Nevertheless, 21% believe that there are significant challenges: some German executives say that regulations hinder their ability to manage regulatory changes and maintain compliance, leading to unexpected costs and disruption. For more key findings, check out the report on our global cybersecurity study.
In the pharmaceutical industry, compliance is subject to various factors: legal and financial factors, technological and medical innovations, cultural influences, and the realities of educational policy and demographics.
In collaboration with industry experts from the compliance field, PwC has developed the whitepaper 'The Future of Compliance in the Pharmaceutical Industry’. It offers a comprehensive overview of current issues and key compliance challenges, and provides information about trends and risks, along with their impact on companies in the pharmaceutical industry.
AI regulations and standards in the EU are growing. The EU’s AI Act is the world’s first set of comprehensive, risk-based rules for AI systems. This development makes it critical for businesses to proactively prepare to comply with the new regulations.
With decades of experience and an interdisciplinary team of compliance experts, lawyers and technology specialists, we at PwC can help you transform your company’s compliance function. Combining regulatory know-how with digital solutions, we work to minimise risk, increase efficiency and strategically integrate compliance into your value chain – making compliance a success factor for your business.
Jörg Tüllner
Jörg Tüllner is a Partner at PwC Germany in the Risk & Regulatory division. He has been with PwC Germany since 1996, bringing over 27 years of practical project experience across various industries. As a member of the Risk & Regulatory Leadership Team, Jörg actively oversees and manages numerous national and international projects related to Governance, Risk, and Compliance.
Kolja von Westerholt
Kolja von Westerholt is a Partner at PwC Germany in the Risk & Regulatory division. He has been with PwC Germany since 2007 and possesses extensive consulting experience in corporate governance, compliance transformation, and risk management. As Co-Lead for Product Compliance Services, Kolja specializes in the establishment and effective operation of product compliance management systems.