Each year, as we prepare our annual Top 10 Risk & Compliance Trends report, discussion focuses on the social, political and business environments in which organizations operate. And every year, we acknowledge these environments are growing more complex. This year is no exception. Complexity is the dominant theme in this year’s report as we examine the implications of new regulations, stronger enforcement of existing regulations, and how the nuances of behavior in the workplace are magnified in the heightened social and political climate of today.
This year will be buffeted by elections, trade wars, Brexit and other political transitions that are sure to be controversial and, to one degree or another, impactful.
This year will be buffeted by elections, trade wars, Brexit and other political transitions that are sure to be controversial and, to one degree or another, impactful. We anticipate stronger regulatory enforcement actions across the globe, covering everything from economic sanctions and enhanced whistleblower protections, to ever-present data privacy and information security issues. And if that weren’t enough, there are growing expectations among employees, customers, politicians and other constituents for businesses to demonstrate greater social responsibility and sustainable practices.
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Each of the issues, and many more identified in our trends report, represent a potential area of risk. In the past, it might have sufficed to adopt a somewhat defensive or reactive approach to manage these risks. This is no longer tenable. Risk and compliance professionals must now find ways to anticipate, monitor and be proactive in identifying and prioritizing risks, and they’ll need technology automation to support those efforts within and across business units. In 2020, companies taking the lead in this area will manage risk holistically, despite functional silos, and they’ll implement integrated risk management (IRM) systems that address risk across multiple use cases. Late adopters will continue to be reactive, implementing point solutions to address a single risk area while leaving their organization exposed in other areas.
Achieving this resiliency requires aligning efforts across all areas of the business and being prepared for the potential issues that are inevitable.
No company can, or even should, eliminate all risk. What we need to contemplate is how to be more resilient in the face of risk. Achieving this resiliency requires aligning efforts across all areas of the business and being prepared for the potential issues that are inevitable. This approach not only supports business continuity, it also demonstrates to all stakeholders – from employees to partners to regulators – that risk management and regulatory compliance are priorities.
For a full review of our trends and predictions this year, please download the eBook today.