Standardizing Compliance Metrics: Honeywell’s Approach to Assessing Risk Exposure and Effectiveness of Compliance Initiatives

Honeywell Enhances Compliance Measures Through Digital Transformation

In an effort to streamline its risk assessment processes, Honeywell has implemented a new approach to evaluating its compliance areas. By incorporating digital transformation into its compliance initiatives, the company aims to establish a standardized set of metrics to effectively assess its exposure to risks across the business.

Recognizing the challenges posed by varying regulatory structures in areas such as anti-corruption, cybersecurity, and insider trading, Honeywell sought guidance from the U.S. Department of Justice’s guidelines for evaluating corporate compliance programs. In addition to adopting these guidelines, Honeywell introduced its own criteria for digital transformation, which includes factors such as audit, culture, investigations, mergers and acquisitions, policy and procedure, resources, risk assessment, third-party management, and training and internal communications.

To populate its assessment framework with accurate and high-quality data, Honeywell engaged compliance area directors to complete tailored online surveys and conducted one-on-one interviews with employees. The data collected from these sources was then analyzed using the technology platform EY Virtual, with the assistance of EY subject-matter resources.

After cleaning and scrubbing the data sets to ensure consistency, reliability, and accuracy, Honeywell augmented its internal data with publicly available industry data and insights from EY’s global perspectives. This comprehensive approach allows Honeywell to not only assess its compliance program elements effectively but also compare them with industry peers.

By leveraging digital transformation and data-driven insights, Honeywell is taking proactive steps to enhance its compliance measures and mitigate risks effectively. This innovative approach underscores the company’s commitment to maintaining a robust and effective compliance program in today’s complex regulatory landscape.