Compliance Trends 2021
Having to wear many hats, compliance and risk leaders are:
- The early warning signal for corporate risk;
- An architect of internal processes;
- The enforcer of checks and controls; and,
- An advisor to the organisation’s leaders.
As a result of shifting workplace culture, technology evolution, and financial disruption caused by a global pandemic, compliance leaders around the world are being asked to deliver effective, scalable, and flexible programs, at the same time as reducing costs and achieving better results.
At the same time, the risk management landscape has expanded to now include new areas of focus, and organisations are turning to compliance leaders to reduce the risk of business disruption in response to emerging threats.
A recent report, by ACA Global, provides an insightful analysis of the concerns, challenges, and priorities of compliance and risk management.
The report identifies the following 5 key forces that are shaping risk management and compliance in 2021.
Compliance Trends 2021 – #1
Organisations are looking to risk and compliance to cut costs, and do more with less.
Risk and compliance teams increasingly face pressure to downsize, outsource, automate, and cut costs. As a result, companies are turning to technology and outsourcing solutions to help them achieve their compliance and risk management goals.
Compliance Trends 2021 – #2
The rapid rate of industry change demands agility, scalability, and resilience.
Technology is transforming business models and organisations today are increasingly looking to leverage the latest solutions for their industry to increase efficiencies as well as strengthen their operational resilience.
A Forbes article from early 2021 also discusses operational resilience as a key compliance trend to watch in 2021. The article discusses the increased threat of cyber attacks and how regulators, and organisations, now need to respond by building their digital operational resilience.
Compliance Trends 2021 – #3
Regulators and investors have increased expectations and oversight.
Regulatory body and investor expectations around transparency, reporting, monitoring, and testing, are increasing. Regulators around the globe are experimenting with new technologies and analytics to identify risks.
Compliance Trends 2021 – #4
Reliance on third parties is increasing and driving the need for better diligence and oversight.
Research from Gartner reveals that compliance programs are focused on third-party risk more than ever before. Third parties have greater access to organisational data assets and are working with an increasing number of third parties. This presents a challenge to manage the risk of reliance on third parties.
According to Gartner, the answer to improving risk identification and monitoring is to take an iterative approach that requires gathering some information on a third party prior to engagement but also prioritises information gathering over the course of the relationship.
Compliance Trends 2021 – #5
Evolving cyber threats and business disruptions demand new strategies and solutions.
Along with cyber attacks, the frequency and impact of business disruptions caused by economic crisis, geopolitical threats, supply chain disruptions, and natural disasters, is also increasing. As a result, organisations need to have holistic programs in place to manage these risks, as well as understand and manage the interrelationships across them.
An integrated management system (‘IMS’) is essential to understanding the interrelationships across managing different risks. An IMS is a system that integrates all of a business’s policies, processes, and procedures into one unified management framework.
A good IMS will help enable a business to:
- Optimize management processes and operations;
- Optimize use of its resources and reduce costs;
- Streamline their processes and procedures;
- Increase efficiency and avoid duplication;
- Minimize the disruption caused by external audits; and,
- Focus on providing good business outcomes.
Learn more about integrated management systems here.
Outsource Your Compliance
Get in touch with QSM Group today to discuss your compliance outsourcing needs.
Our experienced consultants work with organisations, regardless or industry, to support organisations with QHSE consulting and auditing, as well as streamlined compliance and risk management.