Nearly two-thirds of compliance professionals view third parties as their most heightened risk
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- Published: Friday, 19 May 2023 10:19
Senior compliance professionals are more concerned with increasing challenges relating to third parties than any other top-of-mind risk area, according to survey findings from Compliance Week and the Technology segment within FTI Consulting, Inc.
Regardless of company size, compliance program maturity, and industry, the majority of respondents said they expect to dedicate increased attention to third-party risk management, far more than any other area listed, such as regulatory exposure, fraud, and ethics.
The survey, which in addition to asking senior compliance executives to rank their top risks, examined the extent to which organizations are implementing technology solutions to solve their biggest challenges. Third-party risk management was also the most popular risk area for which respondents currently employ technology solutions. When asked their top priority for upgrading or implementing compliance-related technology over the next year, respondents most commonly selected reporting and dashboarding tools, indicating a need to increase visibility into the overall risk environment.
Additional findings from the survey include:
- In addition to concerns over third parties, top-of-mind risks for 2023 included litigation/regulatory exposure (45 percent); anti-bribery, anti-corruption and anti-money laundering fraud (38% percent); and ESG matters (38 percent).
- 55 percent are currently using technology for third-party risk management needs.
- Only 12 percent feel they can ‘very effectively’ access data from off-channel sources and emerging data sources.
- Only 13 percent describe their team’s use of technology as ‘very mature’, compared to 29 percent as ‘not mature’.
- 84 percent of ‘very mature’ respondents said machine learning and artificial intelligence are important to their compliance strategy, compared to 45 percent of ‘not mature’ respondents.
