PORTLAND, Ore.— January 31, 2023 — NAVEX, the leader in integrated risk and compliance management software, today announced the release of its Top 10 Risk & Compliance Trends report. Including insight from experts across governance, ethics, compliance and risk management, the report highlights the need to use regulation and integrity as twin guideposts to build sustainable program.
For the past ten years, NAVEX has influenced and guided the GRC market through the publication of several much-anticipated annual reports, including this year’s Top 10 Trends report underscores the need to continuously address evolving risks and regulations with a culture of integrity. Specifically, the Top Ten Risk & Compliance Trends for 2023 are:
1. Whistleblowers, if not heard, will continue to report outside the organization. Reporters have recently shown they are more willing to take their concerns outside the organization if their issue is not addressed internally in a timely and appropriate way.
2. The importance of data will continue to grow – out of necessity. Data will play a critical role in helping compliance officers prove to regulators that their programs work in practice.
3. The EU Whistleblower Directive continues to gain momentum. The coming year will continue to present challenges for organizations working to harmonize internal whistleblower programs across multiple EU members states.
4. Focus privacy efforts on known knowns. While the U.S. Congress is unlikely to pass a federal privacy law, organizations would be wise to focus their 2023 efforts on states and countries where laws currently exist.
5. Witness the rise of the extended enterprise. To effectively assess and mitigate risks associated with this growing interconnected enterprise, organizations will need to clearly implement a well-defined third-party risk strategy, process, and architecture.
6. The rise of sanctions regimes will persist. Subject to frequent change, organizations must find a mechanism to stay abreast of continuously changing sanctions and continuously review their transactions to ensure compliance.
7. For CCOs to certify their programs, they need greater executive leadership buy-in. In 2023, compliance officers will need to have more frank conversations with their boards and senior management teams about investing in their compliance programs.
8. CCOs, L&D team to reflect hybrid work in ethics and compliance education. Compliance and Learning and Development will team to provide opportunities for personal and professional development within a culture that embraces authenticity and learning to benefit from better employee engagement, performance and retention.
9. Courts will continue to impact the American regulatory landscape. In June 2022, the Supreme Court ruled in West Virginia v. EPA that the agency overstepped its remit by enacting a regulatory scheme beyond that authorized by Congress. Focused on the major questions doctrine, other regulatory schemes may be challenged using the same grounds, which will cause uncertainty within compliance and ESG.
10. When it comes to ESG disclosures, don’t let the tail wag the dog. For companies of any size, greenhouse gas accounting will become as normal and universal as financial accounting.
Access the full report here.
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