Phil Cotter, Managing Director of the Refinitiv Risk business, takes a look ahead in 2021, also reviewing of some of 2020’s key themes and trends in the risk and compliance space.
The COVID-19 pandemic undeniably redefined what business as usual has meant to innumerable organizations across the globe.
In the risk space, a sudden and dramatic increase in online activity was almost immediately matched by steep rises in cybercrime, fraud and a plethora of other online crimes as financial criminals wasted no time in exploiting new opportunities.
Alongside this, global supply chains experienced equally sudden and often severe disruptions, and many firms were left scrambling to onboard new suppliers at short notice and against a backdrop of rising third-party risk.
This altered risk landscape came in the wake of the 2020 Refinitiv report, of nearly 1,800 global third-party relationship, risk management and compliance professionals — a survey that revealed respondents deal with an average of nearly 10,000 third-party relationships, and further, that many are not conducting complete third-party due diligence, either when onboarding new third-parties, or in terms of ongoing monitoring.
Our survey revealed that 43 percent of third-parties are not subject to due diligence checks. This statistic was up six percentage points from our 2016 survey, and moreover, 60 percent of respondents are not fully monitoring third-parties for ongoing risk.
Our survey also shone a spotlight on the rising threat of green crime, highlighting an urgent need for organizations to take more decisive action against this type of crime. Worryingly, 84 percent of institutional investors believe that ‘greenwashing’ (a popular term for providing misleading environmental credentials) is becoming increasingly common.
2021: the year ahead in risk and compliance
As 2021 unfolds, some key themes to watch will include:
This is an except of the original blog article published on Refinitiv Perspectives. Continue reading the rest of the article here.
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