To weather an increasingly disruptive world, financial institutions across Europe must revolutionize their compliance and risk approaches
Even before COVID-19 ripped the rug out from under the world’s economies, financial institutions (FIs) were facing increasing pressure to get their houses in order.
Growing concern over a host of modern-day dilemmas, including slavery, cyber security, and climate change, has seen scrutiny mount over FIs’ activities. Customer, investor and societal focus on institutions’ environmental, social and governance (ESG) performance has gone mainstream. This translates to a deepening reputational, regulatory, and financial risk for organizations that fall short.
To survive and prosper long-term, FIs need to be on the right side of this complex, changing agenda. But it won’t simply be a case of adding more boxes to their compliance and risk checklists. It will involve a wholesale transformation of FIs’ compliance and risk management function—a "New World Compliance"—to avoid the mistakes of the past and move forward into the future.