Traditional ways of implementing and enforcing compliance programs through training and testing are proving woefully inadequate. In this blog piece by Henry Engler, Senior Editor at Thomson Reuters, reviews a Harvard Business Review study on Why Compliance Programs Fail, and interviews one of the authors.
Many firms rely on their ability to show regulators their training and testing results in order to demonstrate the effectiveness of their compliance programs. And yet, these efforts typically devolve to simple ‘check-the-box’ exercises with little impact on outcomes. What’s needed, concludes the study authors, is to move beyond knowing what is in the code of conduct and figure out how to ‘nudge’ people to do the right thing.
Read the post: Compliance Programs Need to Incorporate Behavioral Science
Read the HBR article: Why Compliance Programs Fail