Which of the following statements is true regarding KPIs in compliance?

The statement that KPIs help to provide a clear framework for evaluating compliance performance is true because Key Performance Indicators (KPIs) are essential tools that organizations use to measure the effectiveness and efficiency of their compliance programs. They establish specific, quantifiable metrics that can help assess whether compliance objectives are being met. By having KPIs, organizations can monitor their processes, identify areas for improvement, and ensure adherence to regulatory standards. This structured approach allows for better decision-making and alignment with organizational goals, ultimately enhancing the overall compliance culture.

Setting KPIs that are aligned with compliance objectives enables organizations to track progress over time, making it easier to communicate performance across different levels of the organization. As a result, KPIs serve not only as a performance measurement tool but also as a means to promote accountability among team members involved in compliance activities.

In contrast, focusing solely on financial metrics or restricting the application of KPIs to only executive-level staff would limit their effectiveness and overlook important qualitative aspects of compliance. Without a framework for evaluating performance, organizations may struggle to demonstrate the value of compliance efforts, leading to a lack of buy-in from stakeholders.