Risk experts warn of regulatory challenges ahead
Risk experts have warned that regulation is likely to increase in response to rising concerns around bribery and corruption.
According to new research from management consultancy Kroll, 26 per cent of risk experts in the UK expect bribery and corruption risks for their company to increase in 2022. Just eight per cent expect these risks to decrease.
Kroll’s Anti-Bribery and Corruption (ABC) Benchmarking Report found that the key driver of this risk is the impact of remote working and decentralised management.
Meanwhile, almost half (48 per cent) of UK risk experts have regulatory concerns about the year ahead. The main areas of regulatory concern are expected to include increased enforcement activity, new global regulatory requirements and legislation, and an increased focus on supply chain risk and digital operational resilience.
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The report also found that European respondents are more likely to expect that bribery and corruption risks will increase this year, with 35 per cent saying that this was a key concern.
“UK risk officers are more optimistic in their predictions for the year ahead than their European and global counterparts, though it’s clear that some of the legacy impacts of the pandemic, such as supply chain disruption and remote working, are still major sources of concern,” said Kevin Braine, managing director in the compliance risk and diligence practice of Kroll.
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“These changes will likely be with us for some time yet, so it’s important that businesses find a way to incorporate them into their ABC programmes.”
UK firms are the most positive globally about their ability to weather the regulatory risks ahead. 46 per cent of UK respondents said that their anti-bribery and corruption programmes are “very effective,” compared to 40 per cent globally and 39 per cent in Europe.
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