The regulatory landscape is one of their priority concerns. Less than half of the surveyed executives think they’re managing this complexity and its associated risks effectively.
At CEO/senior executive level, risk and complexity concerns crystallise in several ways:
- Failure of specific risk and compliance programs
- Problems responding to increasing regulatory complexity
- Ineffective, fragmented and duplicated approach to risk.
Boards and audit committees, seek more accurate and timely reporting of risk governance matters. They want enhanced risk and compliance effectiveness as they try to contain spiralling compliance costs.
To respond to the challenge, boards need to ask:
- Is the risk and compliance function robust enough to cope with more complex risk, increased scrutiny and more rigorous obligations?
- Has a siloed approach in the organisation led to duplication and overly complex risk and compliance processes that don’t stand up in a rapidly changing environment?
- Are directors prepared for their increased governance responsibilities and the corresponding scrutiny attached to their role?
It is essential that business responds to risk and complexity issues strategically, treating them as an opportunity to create and enhance business value, not just a cost.
KPMG has developed a proactive approach to these issues based on a governance, risk and compliance (GRC) framework. Talk to us to see how it can apply to your business.