Compliance Becomes Biggest Challenge for Businesses in New Normal

Of all things that have been threatened by the remote working model in the age of new normal, compliance takes the lead, showed a study by a leading business research firm.

More than 67 per cent of the 250 chief compliance officers covered by the study said economic risks have been the most challenging, while 46 per cent identified technology risks as the most challenging, and 33 per cent said political risks have been the biggest challenge for them.

The study – Turning Compliance Into Competitive Advantage – by Dun & Bradstreet, a global provider of business-to-business data, insights and artificial intelligence-driven platforms, was conducted in the last quarter of 2020 covering the 250 CCOs representing businesses with over Rs 500 crore revenue across nine sectors and seven major cities in India.

The survey looked into the trends of misconduct and fraud during the pandemic. According to the survey, 39 per cent of CCOs say that they have witnessed an increase in misconduct, fraud, acts of bribery among third parties and ecosystem partners during the pandemic. It found that 62 per cent of the responding businesses have started amending their internal compliance policies with respect to the work-from-home (WFH) model.

“The growing tidal wave of regulations is placing tremendous pressure on businesses, especially those with international operations. As every business is susceptible to misconduct and fraud by its employees or even business partners, it is important to have the right compliance framework. It is even more important to ensure effective enforcement of the guidelines and best practices to avoid financial and reputational damage,” said Arun Singh, Global Chief Economist at Dun & Bradstreet.

According to the survey, 54 per cent of the responding businesses stated that the pandemic had impacted the credit limit of both suppliers and their own business. While businesses have seen a 15 per cent impact on average, the figure was as high as 60 per cent in some cases.

“The CCOs have been quick to jump into a crisis mode, ensuring the well-being and safety of employees and helping them with remote working. They were also tasked with navigating an increasingly complex regulatory environment,” Avinash Gupta, Managing Director, Dun & Bradstreet India, said.