Fears of an economic slowdown and the future of Europe are the main issues keeping global compliance professionals awake at night. These are the findings of new research from The Risk Advisory Group, which surveyed more than 150 compliance professionals across a range of global businesses to uncover their main concerns and priorities for the year ahead.
Half of the respondents in this year’s Compliance Horizon survey, now in its second year, cited the threat of a recession as the biggest risk facing their business in the year ahead (53%), with Brexit their second biggest concern. More than half of respondents (55%) are still unsure about what it will mean for their business, but believe that a change in regulations or new regulations are the most likely implications for them. Worryingly 1 in 10 (13%) fear that leaving Europe may adversely affect their ability to recruit the right talent.
The US election also featured highly in compliance professionals’ responses, with a quarter (27%) seeing it as one of the biggest threats facing their business in the year ahead, and a far greater number are concerned about the implications a Trump victory might have on the profession. When asked their views on the two Presidential frontrunners at the time, 4 out of 5 respondents (80.5%) identified Donald Trump as the candidate who poses the greater threat to the compliance profession.
Many articulated reasons for their view, with common themes including his express intention to deregulate the business sector and a lack of understanding of both international trading relationships and the rule of law.
Against this backdrop of unprecedented change and uncertainty, one of the challenges compliance professionals say they continue to face is lack of resource. 73% of the compliance professionals we spoke to think that their budgets will either be cut or stay the same in 2017. 48% said it would take an internal investigation to drive any increase. There is clearly a strong emphasis on doing more with the same or less in the next 12 months, which could explain why respondents said that their key priorities will be driving efficiencies in processes (cited by 51%) and ensuring company-wide engagement and training (a priority for 49%).
Commenting on the findings, Bill Waite, Group CEO of The Risk Advisory Group, said: “The UK’s decision to leave Europe and the US election result are clearly dominating compliance professionals’ thoughts right now. No one knows for sure what Brexit will mean or what impact Donald Trump’s policies will have.
“But in the face of great uncertainty, there is a sense that compliance professionals are holding their nerve, looking at how to ensure they are in the best position to adapt to new or changing regulations. For 25 % of the people we surveyed this means improving efficiencies – bolstering their internal defences so that they are prepared for the future, whatever it holds.”
The Risk Advisory Group has developed LUMA in response to the ever-increasing effort required by businesses to comply with regulations. LUMA creates a single point of control for third parties, allowing companies to collect information directly from them securely, streamline compliance processes and centralise data.
(Source: The Risk Advisory Group)
