The Real Cost of Compliance: 5 Insights from SAI360’s GRC Benchmark Report Survey

In a collaborative effort with The Hague University of Applied Sciences, Peter Konings of Johnson Controls, and Thought Leader Global, SAI360 conducted a benchmark report survey to benchmark the current state of Governance, Risk, and Compliance (GRC) practices across various industries. This APAC-focused survey aimed to understand the challenges organizations face in managing compliance and risk.

5 Benchmark Report Findings 

• 44.3% spend over $1M annually 
• Agriculture keeps costs < $100K 
• Industry & Energy costs high 
• Financial services show varied spending 
• Automation could cut costs 

A Closer Look at Benchmark Report Survey Insights 

One of the key findings from the report is the substantial cost associated with compliance. A staggering 44.3% of respondents estimated their annual cost of compliance to be over $1 million. This figure encompasses expenses related to internal audit, financial compliance, business compliance, IT compliance, IT security, and the cost of external auditors.

The GRC benchmark report survey also revealed that industries such as Agriculture and Materials have a more diversified distribution of compliance costs, with a portion of firms managing to keep expenses under $100,000.

However, the Industry and Energy sector stood out for its high compliance costs. This is likely due to the significant regulatory scrutiny and inherent operational complexities of managing hazardous materials and sophisticated equipment. 

While larger firms generally incur higher compliance costs, the financial services sector exhibited varied spending patterns within size categories. This suggests that some firms are better equipped to manage compliance capital efficiently than others. 

This survey ultimately highlights key opportunities for cost reduction and efficiency gains through automation and advanced technology, potentially improving compliance effectiveness and risk management. 

Read the Full Benchmark Report Survey

Click here: 2024 Governance, Risk & Compliance Benchmark Report

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