Towards a Compliance Reporting using a Balanced Scorecard

Authors: Michael Amberg, Dipl. Kfm. Johannes C. Panitz

Abstract:

Compliance requires an effective communication within an enterprise as well as towards a company-s external environment. This requirement commences with the implementation of compliance within large scale compliance projects and still persists in the compliance reporting within standard operations. On the one hand the understanding of compliance necessities within the organization is promoted. On the other hand reduction of asymmetric information with compliance stakeholders is achieved. To reach this goal, a central reporting must provide a consolidated view of different compliance efforts- statuses. A concept which could be adapted for this purpose is the balanced scorecard by Kaplan / Norton. This concept has not been analyzed in detail concerning its adequacy for a holistic compliance reporting starting in compliance projects until later usage in regularly compliance operations. At first, this paper evaluates if a holistic compliance reporting can be designed by using the balanced scorecard concept. The current status of compliance reporting clearly shows that scorecards are generally accepted as a compliance reporting tool and are already used for corporate governance reporting. Additional specialized compliance IT - solutions exist in the market. After the scorecard-s adequacy is thoroughly examined and proofed, an example strategy map as the basis to derive a compliance balanced scorecard is defined. This definition answers the question on proceeding in designing a compliance reporting tool.

Keywords: Balanced Scorecard, Compliance, ComplianceReporting, Compliance Scorecard.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1330033

References:

[1] C. Menzies, J. T├╝llner, A. Martin, ÔÇ×Compliance Management," Zeitschrift f├╝r Organisation (zfo), pp. 136-142, vol. 77, March 2008.
[2] G. Wecker, S. Galla, ÔÇ×Pflichten der Gesch├ñftsleitung und Aufbau einer Compliance Organisation," in G. Wecker, H. van Laak, ÔÇ×Compliance in der Unternehmerpraxis," Wiesbaden: Verlag Dr. Th. Gabler, 2008.
[3] C. Menzies, ÔÇ×Sarbanes-Oxley und Corporate Compliance, Nachhaltigkeit, Optimierung, Integration," Stuttgart: Sch├ñffer-Poeschel, 2006.
[4] A. Teubner, T. Feller, ÔÇ×Informationstechnologie, Governance und Compliance," Wirtschaftsinformatik, pp. 400-407, issue 5, 2008.
[5] O. Mäder, "Ein Cockpit für den Aufsichtsrat," Wiesbaden: Deutscher Universitäts-Verlag, 2006.
[6] M. Theisen, ÔÇ×Information und Berichterstattung des Aufsichtsrats," 4th ed., Stuttgart: Sch├ñffer-Poeschel, 2007.
[7] W. van Grembergen, S. De Haes, "The Balanced Scorecard and IT - Governance," The ISACA Information System Control Journal, issue 2, 2005.
[8] M. Goeken, R. Knackstedt, "Referenzmodellgest├╝tztes Compliance Reporting am Beispiel der EU-Finanzmarktrichtlinie MiFID," in HMDPraxis der Wirtschaftsinformatik, pp.47-57, issue 263, October 2008.
[9] Regierungskommission Deutscher Corporate Governance Kodex, "Deutscher Corporate Governance Kodex," Version June 2008, http://www.corporate-governancecode. de/ger/download/D_Kodex%202008_final.pdf.
[10] C. Stenger, "The Corporate Governance Scorecard: a tool for the implementation of corporate governance," Corporate Governance: An International Review, pp 11-15, vol. 12, 2004.
[11] C. Symons, Forrester Research, "Governance Communications, Measuring And Improving Governance With A Balanced Scorecard," 2009, http://www.forrester.com/Research/Document/Excerpt/0,7211,47500,00. html.
[12] N.N., Report of the IFAC, "Enterprise Governance, Getting the Balance right," 2004, www.ifac.org/MediaCenter/files/EnterpriseGovernance.pdf.
[13] F. Caldwell, T. Eid, The Gartner Group, "Magic Quadrant for Enterprise Governance, Risk and Compliance Platforms," 2008, http://www.gartner.com/DisplayDocument?id=710516.
[14] N.N., "RSA veröffentlicht Compliance Scorecard zur unkomplizierten Bestimmung der optimalen Security-Strategie," 2005, http://www.rsa.com/press_release.aspx?id=5959.
[15] N.N., "Online-Dashboard als Compliance Scorecard," 2009, http://www.compliancemagazin.de/produkte/ueberwachunganalyse/veriz onbusiness270409.html.
[16] Horváth & Partners, "Balanced Scorecard umsetzen," Stuttgart: Schäffer-Poeschel, 2007.
[17] R. S. Kaplan, D. P. Norton, "Having Trouble with Your Strategy - Then Map It," Harvard Business Review", pp.1-11, September - October 2000.
[18] F. Becker, M. Fallgatter, "Strategische Unternehmensf├╝hrung," 3rd ed., Berlin: Erich Schmidt Verlag, 2007.
[19] N.N., Accenture, "Compliance - from ÔÇ×Must Do" to Profit Opportunity," 2008.
[20] G. Wecker, H. van Laak, ÔÇ×Compliance in der Unternehmerpraxis," Wiesbaden: Verlag Dr. Th. Gabler, 2008.
[21] S. Langenbahn, "Erfolgsrezept f├╝r das regulierte Wirtschaftsumfeld - Sicherheit durch Compliance Management," in A.-W. Scheer, W. Jost, H. Kindermann, H. Kruppke, ÔÇ×Agilit├ñt durch ARIS Gesch├ñftsprozessmanagement," Heidelberg: Springer Verlag, 2006.
[22] K. Umnuß, A. Becker, ÔÇ×Corporate Compliance Checklisten, Rechtliche Risiken im Unternehmen erkennen und vermeiden," Munich: Verlag C.H. Beck, 2008.
[23] D. Langenscheidt, K. Schreiber, H. H. Grimm, ÔÇ×Compliance und Risikomanagement - Herausforderungen und Chancen f├╝r Versicherungsunternehmen," Deloitte White Paper No. 29, http://www.deloitte.com/dtt/cda/doc/content/de_con_frs_WP29_Compli ance_und_Risikomanagement_070408(1).pdf.
[24] S. Weber, T. Lentfer, M. Köster, "Einfluss der Corporate Governance auf die Kapitalkosten eines Unternehmens," Zeitschrift f├╝r Corporate Governance, pp. 53-61, issue 2, 2007.
[25] N.N., International Chamber of Commerce, Transparency International, World Economic Forum Partnering Against Corruption Initiative (PACI), UN Global Compact, "Clean Business is good business," 2008, http://www.unglobalcompact.org/docs/news_events/ 8.1/clean_business_is_good_business.pdf.
[26] E. Vetter, ÔÇ×Compliance in der Unternehmerpraxis," in G. Wecker, H. van Laak, ÔÇ×Compliance in der Unternehmerpraxis," Wiesbaden: Verlag Dr. Th. Gabler, 2008.
[27] A. Chaterjee, D. Milam, ÔÇ×Gaining Competitive Advantage from Compliance and Risk Management," in D. Pantaleo, N. Pal,"From Strategy to Execution," Heidelberg: Springer Verlag, 2008.