Concerns over a host of modern-day dilemmas, including slavery, cyber security, and climate change. Customer, investor and societal focus on environmental, social and governance (ESG) performance has gone mainstream.
This translates to a deepening reputational, regulatory, and financial risk for organisations. And the reputational and financial risk of non-compliance could not be clearer. Several major corporations have faced eyewatering financial penalties as a result of sensitive data breaches, incurring multi-million-dollar payouts, legal fees, and damage to brand image.
Operating within this complex, changing agenda will involve a wholesale transformation of compliance and risk management function.
The main failure is the inability to see compliance and risk management as a businesswide responsibility. It will take strong leadership to effect the kind of deep cultural changes needed to enter the new world of compliance where, to paraphrase Warren Buffet, ‘Everyone must be [their] own compliance officer’. This will require:
- Collaboration between risk and compliance management to understand risks and strive to reduce them. This is what the regulators will expect.
- Re-engineering processes to be more effective and applying new technology and automation. But only where the underlying process is robust.
- The effective adoption of new, user-friendly technological and data competencies that work intelligently across departments is key to meeting future compliance needs.
- Addressing integrity risk by championing and embodying an end-to-end, compliance-positive culture internally.
Dissolving organisational boundaries, integrating risk management, compliance, privacy and financial crime, and encouraging everyone to see risk and compliance as their business defines Compliance 4.0
Businesses will need to embrace change, get ahead of the agenda and transform their operations at speed, before the court of public opinion – rather than regulation – forces their hand.
In this webcast we explore how to approach the new world of risk management, the stages of maturity that define a modern compliance approach and the levers businesses can apply to effect change.