In 2005, Ernst & Young obtained surveys from 95 companies, mostly from the Fortune 1000 and highly regulated industries. One question asked on the survey, as laid out in a report in November 2005 at 9, was “Does Compliance overlap with other groups?” Of the four groups listed as having a possible overlap — Legal, Audit, Operational Risk and Business Units, the greatest “actual overlap” of Compliance was with Legal (67%)
About a third of the respondents said that as between Compliance and Legal, they had “Clearly differentiated roles and responsibilities” (31%). As mentioned, “Actual overlap” was chosen by two-thirds of the respondents (67%). Another choice – and, yes, the percentages total more than 100 – was “Perceived overlap” at 17%. Finally, “More clarification of roles and responsibilities needed” garnered 29%. I can’t figure out the percentages, but the fundamental message is clear: the legal and compliance functions have much in common (See my post of June 11, 2008: compliance with 33 references.).