Few companies have the ‘big picture’ view needed for effective risk and compliance management. They understand the importance of an integrated approach to these activities but many have short-sighted practices that end up becoming a costly and complex burden, reveals the EIU.
Awareness of risk and compliance issues remains low in some business functions. Respondents from finance are the least likely among several functions to admit to risk and compliance failures – only 28% did so in a survey conducted for the study. This is a worrying state of affairs considering the economic turmoil of the past 30 months, which has seen businesses across the spectrum under pressure to tighten their fiscal oversight mechanisms.
Other key findings include:
- Companies may be underestimating the extent of risk and compliance failures in their organisation.
- A lack of internal communication prevents lessons from bring learnt.
- Caution: disagree on risk, and financial performance suffers.