A Demonstrable and Sustainable Approach to Compliance Program Effectiveness

This article explores how companies can intentionally test and evidence the effectiveness of their ethics and compliance programs. It reviews the evolution of regulatory expectations and the widening range of stakeholder requirements as to program effectiveness - from prosecutors and regulators to auditors, sustainability indices, and internal management. The article introduces a structured framework for evaluating compliance program design, empowerment, and execution, with a focus on evidentiary rigor. It outlines practical methods for documenting program standards, assigning testing responsibilities, capturing metrics and metadata, and using generative AI to enhance assurance and insight. The article also includes a call to action for internal teams and external providers to support program effectiveness testing in meaningful, scalable ways.

Like compliance programs, this practice note will benefit from continuous improvement! If you have additional insights or techniques for assessing program effectiveness, we would love to hear them.