An outdated or inefficient process for tracking and dealing with conflicts of interest can be a major contributor to the risk of noncompliance. However, the contributors to risk are not always clear. Outlined in this white paper are “5 Ways Your COI Process Creates Risk.
The cost of noncompliance rose 45% between 2011 and 2017, and that trend is poised to continue. In an analysis of 53 multinational companies located in the U.S. and a survey of executives, the average cost of noncompliance in 2017 was $14.8 million per company. Noncompliance costs are 2.71 times more expensive than the cost of maintaining or meeting compliance requirements.
Beyond the financial costs, the reputational risks associated with noncompliance are of equally great importance in an increasingly socially conscious world of business. Negative press can harm a company’s ability to acquire business, attain grants, retain existing business, and otherwise hurt the company’s reputation for years to come.
It follows logically that ensuring organizational compliance is a key priority in risk mitigation. Staying informed, implementing impactful policies, and efficient processes are all key to avoiding risks associated with noncompliance. Conflict of interest (COI) management is no different.
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