The New Face of Compliance is Adaptable, Data Rich and Tech-Driven, Accenture Report Finds

Rhea-AI Summary

Accenture's latest Compliance Risk Study emphasizes the increasing importance of compliance amid growing regulatory focus on consumer privacy and sustainability. The report, surveying 860 global compliance executives, reveals that 95% are fostering a compliance culture across their organizations. However, compliance officers indicate a need for enhanced recognition of their role. Key recommendations include integrating compliance with business strategies, leveraging technology for better insights, and addressing compliance cost challenges, which are projected to rise by 30% over the next two years.

Positive

• 95% of compliance executives are fostering a culture of compliance.
• 93% agree that investments in AI and cloud can yield compliance cost savings.

Negative

• 90% expect compliance costs to rise by 30% in the next two years with 72% reporting flat tech budgets.
• Only 19% have an integrated risk assessment process.

The ever-evolving risk landscape calls for a more proactive, collaborative approach to reimagining the compliance function

NEW YORK--(BUSINESS WIRE)-- A growing global regulatory focus on consumer privacy and data protection, along with new sustainability measurement and reporting laws is furthering the importance of compliance in supporting operational and environmental resilience. Such a shift is reconfirming the vital role of the Chief Compliance Officer, according to Accenture’s (NYSE: ACN) latest global Compliance Risk Study released today.

Accenture’s seventh edition of its compliance risk report – titled “Can compliance keep up with warp speed change?” and based on a survey of 860 global compliance executives across 10 sectors – found that even as compliance pressures continue to increase at speed and scale, significant strides have been made toward establishing a working system that is more responsive and agile. For example, 95% of survey respondents say they have built or are building a culture of compliance to share the responsibility across the enterprise. Yet, a substantial number of compliance officers feel a greater emphasis on the function’s stature is needed to truly strengthen compliance and uphold its mandate.

“As compliance functions mature from a reactive role to a proactive partner of the C-suite, the next generation of leaders should focus on building a strong model of collaboration and shared success within the function and beyond,” said Jason Dess, senior managing director, Global CFO and Enterprise Value lead. “In the face of accelerated transformation, rapid regulatory change, unforeseen crises and mounting data complexity, yesterday’s compliance solutions simply won’t cut it.”

Crucial to strengthening compliance is a “rethink” of the function. This calls for a complete overhaul of the function’s resources, processes and approaches. The report suggests technology and data are key to building a future-ready and risk-proof compliance function, even while technology remains the greatest single challenge and source of disruption for compliance leaders.

“Having compliance at the table is key to guiding companies on how best to mitigate risks, create a compliance culture across the company, and make sound investment decisions to turn the compliance function into a more proactive partner to the business. To evolve with the rapidly shifting landscape, CCOs, CROs and other heads of compliance must engage the C-suite and be open to rethink their business model,” said Samantha Regan, managing director, CFO and Enterprise Value, global regulatory and compliance practice lead at Accenture.

The study identifies several practices compliance leaders can adopt now to move toward a more adaptable and tech-driven compliance function in the future:

• Spearhead C-suite participation across functions to ensure alignment of compliance and business strategies. Establish an enterprise-wide data and information-sharing process to allow compliance leaders to integrate their insights for sharing with senior management and boards of directors. Currently only 19% of respondents say their risk assessment process is integrated across lines of defense and levels of control.
• Build a strong technology and data foundation generating insights at pace for faster and better-informed decision-making. 52% of our study respondents noted the lack of data and information to identify and properly assess business exposure to third-party risks. And 93% of respondents agree that investments in new technologies such as AI and cloud can create compliance cost savings not previously possible.
• Overcome the cost challenge by right-shoring resources. Our study spotlights the “cost shadow” as looming large over the compliance function, as its leaders face the dichotomy of needing to invest in people, processes and tools in the wake of ever-increasing cost pressure. Nine in 10 respondents expect their compliance-related costs to go up by 30% over the next two years, yet 72% say their compliance tech budget has remained flat. New sourcing approaches, like right-shoring resources or outsourcing compliance operations and regulatory change services, can significantly increase efficiencies and decrease costs, freeing up funds to invest in the future.

For more information on Accenture’s Compliance Risk Study 2022 Report, please visit here.

About the Research

Accenture commissioned McGuire Research Services to carry out a survey-based study of compliance leaders. The Compliance Risk Study — 2022 Edition research was conducted from August to September 2021, and surveyed 860 compliance leaders including Chief Compliance Officers, Chief Risk Officers, and heads of compliance functions. Study participants were sourced from around the world across 10 sectors: banking; capital markets; energy; health and public services; insurance; life sciences; software & platforms; telecommunications; utilities; and travel and hospitality.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 699,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

Copyright © 2022 Accenture. All rights reserved. Accenture and its logo are trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220519005136/en/

Michelle Schneider

Accenture

+1 412 874 0282

michelle.schneider@accenture.com

Source: Accenture

FAQ

What does the latest Compliance Risk Study by Accenture reveal about compliance culture?

The study reveals that 95% of compliance executives are building a culture of compliance across their organizations.

How significant are the projected compliance cost increases mentioned in the Accenture report?

The report indicates that 90% of compliance leaders expect compliance-related costs to increase by 30% over the next two years.

What challenges do compliance officers face according to Accenture's Compliance Risk Study?

Compliance officers face challenges such as the need for greater recognition of their role and a flat budget for compliance tech despite rising costs.

What percentage of compliance executives believe in the cost-saving potential of new technologies?

93% of compliance executives believe that investments in AI and cloud can create compliance cost savings.

What does the study recommend for improving compliance integration with business strategies?

The study suggests ensuring C-suite participation across functions to align compliance and business strategies.