New study finds data flow is at the root of the disconnect; twenty-four percent of survey respondents indicate risk and compliance information is siloed and extremely difficult to pull together
December 20, 2021
ATLANTA – Riskonnect, the leader in integrated risk management (IRM) solutions, today released the results of its Risk and Compliance Integration Benchmark Survey. Conducted by Compliance Week, the market survey uncovered that 66% of organizations say a lack of collaboration between risk and compliance functions dramatically or somewhat slowed their response to new and emerging risks.
“Information flow is critical to successful risk management. Every stakeholder needs easy access to the same high-quality data, otherwise it’s impossible to make quick, confident, and strategic decisions about risk,” said Andrea Brody, Riskonnect’s CMO. “Risk today moves incredibly fast. Teams equipped with integrated data can focus on their response strategy instead of tracking down the right information.”
Seventy-three percent of companies plan to invest in people and technology next year to deal with emergent risk and compliance issues. Other key findings from the report include:
- Companies understand the value of integrating risk and compliance data. Twenty-five percent say better business strategies and resource allocation are the most important benefits of integrating their information. Still, only 16% say their risk and compliance data resides in a centralized source that is integrated and accessible for real-time reporting.
- Senior executives have changed their interest level in risk and compliance over the past 18 months, according to 66% of respondents. Executives’ top five priorities include: streamlining risk and compliance processes, real-time data, risk and compliance representation in the C-suite, more frequent reports, and investing in new technology.
- Cybersecurity threats (25%), ERM (12%), and ESG (10%) are the most pressing issues for risk and compliance departments over the next 6-12 months. Respondents say the pandemic will continue to increase data privacy, cybersecurity, and employee health and safety risks.
- More than half (55%) of companies still use spreadsheets to monitor regulatory changes. Only 12% use automation that integrates with other risk and compliance data.
Several obstacles are preventing organizations from strengthening the connection between governance, risk, compliance, and audit data. Insufficient buy-in from other stakeholders is the most common hurdle (43%). Other issues include the cost involved (42%), insufficient demonstration of returns (36%), and having too many disparate legacy systems (38%) and departments that are too scattered within the organization (29%).
The research was based on a survey of 196 organizations. Respondents were primarily from large companies. Twenty percent worked for organizations with more than 10,000 employees and another 34% for firms with between 1,000 and 10,000 employees.
Download the benchmark report for the full results.
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Riskonnect is the leading integrated risk management software solution provider. Our technology empowers organizations with the ability to anticipate, manage, and respond in real-time to strategic and operational risks across the extended enterprise. More than 950 customers across six continents use our unique risk-correlation technology to gain previously unattainable insights that deliver better business outcomes. Riskonnect has more than 525 risk management experts in the Americas, Europe, and Asia. To learn more, visit www.riskonnect.com.