Total number of compliance and ethics services FTEs per $1 billion revenue

Benchmark Data

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Measure Category:
Cost Effectiveness
Measure Id:
106542
Total Sample Size:
86 All Companies
Performers:
25th
– Median
– 75th
–
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are FTEs.

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Number of FTEs dedicated to the compliance and ethics services function / (Total business entity revenue * 0.000000001)

Key Terms

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Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

FTE - (full-time equivalent employee)

To calculate the number of full-time equivalents employed during the year for each respective process or activity, you must prorate the number of employees and the hours spent performing each process/activity. Assume that a full-time worker represents 40 hours per week. Provide the average number of full-time equivalents employed during the year for each respective process. Include full-time employees, part-time employees, and temporary workers hired during peak demand periods. Allocate only the portion of the employee's time that relates to or supports the activities identified for an applicable process. Prorate management and secretarial time by estimating the level of effort in support of each activity, by process.

For example, a part-time secretary in the finance department for XYZ, Inc. charges all of his time to finance department activities. He works 20 hours per week. The secretary splits his time evenly supporting employees working in the general accounting process and the financial reporting process. Thus, his time should be allocated by process. So, if he works throughout the year and supports these two processes, his time would be split evenly as:

20hrs/40hrs = .5FTE * 50% for general accounting = .25FTE for general accounting

20hrs/40hrs = .5FTE * 50% for financial reporting = .25FTE for financial reporting

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.0)

  • 12.4.1 - Create ethics policies (11044) - Creating a code of ethics that communicate the organization's philosophy to employees, vendors, customers, clients, and the public.
  • 12.4.2 - Manage corporate governance policies (11045) - Administering the system of rules, practices, and processes through which a company is directed and controlled. Balance stakeholder interests including shareholders, management, customers, suppliers, financiers, government, and the community. Outline a strategy for achieving organizational goals, from action plans and internal controls to performance measurement and corporate disclosure.
  • 12.4.3 - Develop and perform preventive law programs (11046) - Creating and applying programs and activities. Encourage the adherence preventive laws, such as environmental law, sex discrimination, computer law, estate planning, corporate compliance, business planning, and property transactions.
  • 12.4.4 - Ensure compliance (11047) - Ensuring the organization's compliance position. Validate compliance with different statutes, regulatory directions, and legal principles (using Establish compliance framework and policies [17468]). Coordinate with compliance and risk management personnel.
    • 12.4.4.1 - Plan and initiate compliance program (11053) - Employing an internal system or process to identify and reduce the risk of breaching the Competition and Consumer Act 2010. Remedy any breach. Create a culture of compliance. Design compliance programs.
    • 12.4.4.2 - Execute compliance program (11054) - Implementing the established compliance program in order to meet the government laws and regulations. Create a compliance team that scrutinizes the rules set out by government bodies such as the Securities and Exchange Commission.
  • 12.4.5 - Manage outside counsel (11048) - Managing professionals, sought externally for assistance over legal and ethical concerns. Administer and oversee assistance from subject matter experts and professionals for sourcing expert opinion and counseling over legal and ethical matters.
    • 12.4.5.1 - Assess problem and determine work requirements (11056) - Examining the problems and deciding the action requirements for engaging outside counsel. This process element calls upon the organization to internally analyze the issues for which assistance from external counsel is needed. Additionally, the organization needs to break-down the issue, identifying the tasks and exercises where outside counsel can help.
    • 12.4.5.2 - Engage/Retain outside counsel if necessary (11057) - Recruiting the assistance of outside counsel for any legal and/or ethical concerns. Engage and/or retain any external counsel sought from subject matter experts and professionals.
    • 12.4.5.3 - Receive strategy/budget (11058) - Making a financial plan. This strategy sets out, using figures, an organization's expected future results. Enlist the finance function to support work generated by other business functions in order to build and secure their support for the budget.
    • 12.4.5.4 - Receive work product and manage/monitor case and work performed (11059) - Receiving deliverables from outside counsel, and monitoring the efforts committed by them. Track the progress of, collect, and validate the required work product from the subject matter experts and professionals engaged as external counsel. Verify the amount of effort dedicated by these counsels to the issue at hand, in order to confirm their fees.
    • 12.4.5.5 - Process payment for legal services (11060) - Making payments to legal advisers for their services. Payments include addressing issues or suits by customers, suppliers, competitors, bankers, government agencies, etc.
    • 12.4.5.6 - Track legal activity/performance (11061) - Keeping track of the legal activities and performance of the organization.
  • 12.4.6 - Protect intellectual property (11049) - Safeguarding the intellectual property of the organization. This process requires the organization to protect a wide variety of intellectual property created by it. It involves creating and managing non-disclosure agreements (NDAs), following up on current developments in the areas where the organization holds patents, tracking the use of the organization's copyrighted material, creating and upholding licensing terms, and administering policies for safeguarding intellectual property.
    • 12.4.6.1 - Manage copyrights, patents, and trademarks (11062) - Managing the patents and copyrights already held or sought by the organization. Administer and oversee applying for, securing, and maintaining intellectual property rights in the form of patents and copyrights. Submit applications for such rights. Handle associated legal issues. Draft and communicate proper attributions. Collect royalties. Monitor any misuse of the intellectual property rights.
    • 12.4.6.2 - Maintain intellectual property rights and restrictions (11063) - Managing the upkeep of intellectual property rights by creating and managing a framework of rules, policies, procedures, and restrictions. Outline a clear policy for any possible scenario of their use by any external agent.
    • 12.4.6.3 - Administer licensing terms (11064) - Administering and overseeing the terms and policies associated with licensing the organization's intellectual property. Create and manage the policies and terms governing the possible granting of a license to any external agent. Demarcate a clear framework that governs the licensing of any patents or copyrights held by the organization.
    • 12.4.6.4 - Administer options (11065) - Managing options regarding licensing agreements. Follow favorable terms and conditions.
  • 12.4.7 - Resolve disputes and litigations (11050) - Resolving disputes or civil lawsuits internally or externally.
  • 12.4.8 - Provide legal advice/counseling (11051) - Providing legal advice concerning the substance or procedure of a law in relation to a particular situation.
  • 12.4.9 - Negotiate and document agreements/contracts (11052) - Negotiating terms to reach a final draft of a contract that is acceptable to all parties.