BOSTON—The global regulatory environment has intensified, with sanctions and enforcement measures tightening amid rising geopolitical and economic uncertainty. Compliance organizations must undergo significant transformations to keep pace with diverse and evolving compliance risks, according to a new report from Boston Consulting Group (BCG).
Based on a survey of 250 compliance professionals from around the world, BCG’s second annual Global ESG, Compliance, and Risk Report found that cybersecurity was deemed the most relevant key topic for today’s compliance organizations, followed by business ethics; digitization and data analytics; environmental, social, and governance (ESG) adherence; and sanctions/trade compliance.
“In this increasingly complex world, simply writing policy guidelines and instructing employees to follow the rules will not be enough to stay ahead of the game,” said Katharina Hefter, a BCG managing director and partner and coauthor of the report. “Companies that effectively overhaul their compliance operations now will create maximum value for their respective organizations in the face of future shocks.”
Seven Key Topics for Compliance Strategy
The report revealed the following trends:
“The past year has shone a new light on the crucial role of compliance. Every company needs a strategy, not just to manage current risks, but also to adapt quickly as circumstances, rules, and regulations develop,” said Julia Gebhardt, a BCG managing director and partner and coauthor of the report. “Those that build and integrate all-encompassing compliance strategies, incorporating each of the key topics outlined in the report, will gain sustainable competitive advantage, attract and retain talent, and enhance their reputation for acting responsibly in a challenging business environment.”
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