Top Risk & Compliance Trends from 2023 & Tips for 2024
As companies work to navigate another year of new challenges, risks, and continued economic uncertainty, it is becoming increasingly vital to develop a robust risk management strategy that empowers organizations to get ahead of potential issues before they arise.
Based on the findings of our recent Financial Outlook Report, our team has compiled some of the top risk and compliance trends from the past year alongside some recommendations for 2024.
An Inside Look into Bridgepoint Consulting’s 2023 Financial Outlook Report
The Bridgepoint team polled over 100 industry-leading CFOs and financial experts regarding their top expected risks, challenges, and growth strategies of 2023 alongside some of the key initiatives they are focusing on to foster innovation throughout 2024.
For a more detailed look, download your copy of our 2024 Financial Outlook Report: Perspectives from CFOs here.
Two Essential Risk & Compliance Trends & Findings from 2023
- A proactive approach was the preferred method for mitigating cybersecurity risk in 2023.
- Documentation, training, and hiring experienced staff were essential ingredients to ensuring compliance in 2023.
1. A proactive approach was the preferred method for mitigating cybersecurity risk in 2023
With an ever-growing digital revolution amidst a rise in cybersecurity attacks, companies understand the importance of developing a future-forward approach to risk and compliance.
Over three-quarters (84%) of survey respondents polled reported that they were preventing fraud and improving cybersecurity by conducting risk assessments. This comes alongside 70% conducting audits and 61% conducting penetration testing – all of which are essential for helping to identify and mitigate risks before they arise.
In our survey in Q1 of 2023, only one-third (32%) of respondents stated that they had conducted cybersecurity risk assessments, signaling a significant increase of approximately 50%.
To address these concerns and support their cybersecurity initiatives, companies are largely using a mix of internal and external resources (49%).
Our digital world isn’t slowing down any time soon, especially with new technologies like artificial intelligence (AI) and machine learning (ML) gaining maturity in their functionalities.
As we continue to progress in technological advances, companies should seek to gain a solid understanding of the gravity cyberattacks can have so they can reduce the loss of time, money, and reputation.
What companies can do in 2024 to mitigate cybersecurity risks:
- Conduct cybersecurity and other risk assessments to foresee potential issues before they arise.
- Use a mix of internal and external resources to make quick progress and ensure reliable expertise.
- Audit security measures from third parties to ensure supply chain processes aren’t vulnerable to attack.
- Ensure software and systems are up to date, as outdated systems often have more vulnerabilities.
- Make regular backups of important company and financial data.
- Only give access to accredited users and review access on a scheduled basis
- Ensure employees receive regular training on when and how cybersecurity attacks typically occur.
2. Documentation, training, and hiring experienced staff were essential ingredients to ensuring compliance in 2023
In 2023, we found that companies seemed to rely on a variety of processes to deliver the strongest plan to protect their organization.
When asked about which measures they took to ensure compliance in 2023, 86% of respondents reported that they relied on policy and procedure documentation, 72% established organization-wide training programs, and 61% hired experienced staff.
Through a combination of tactics, companies were able to foster alignment within and across teams to provide their people with the necessary resources to meet compliance – and train others on how to do so.
What companies can do in 2024 to streamline compliance:
- Ensure all policies and procedures are properly documented and reviewed annually.
- Develop robust training programs to keep employees and teams informed and aligned.
- Focus on attracting and retaining high-quality talent.
- Conduct regular compliance audits to proactively identify and mitigate potential issues.
Final Thoughts on Essential Risk & Compliance Trends from 2023
For more information regarding what CFOs and financial leaders are doing to address their toughest risks in 2024, download your copy of our 2024 Financial Outlook: Perspectives from CFOs here.
If you have any questions surrounding the findings or would like to explore how we can partner to help you develop a more proactive approach to risk in the coming year, please feel free to contact us or learn more about how we can help.
About Bridgepoint Consulting’s 2023 Financial Outlook Report
The purpose of this study was to better understand the current challenges CFOs are facing and what measures they are taking to ensure growth and success. The primary research was conducted online from August 2023 through October 2023 across 100+ respondents in the United States.
Approximately 90% of the respondents came from organizations with over $100 million in annual revenue. The respondents came from a variety of industries, including industrial, technology, healthcare, real estate, consumer services, manufacturing, distribution, energy, finance, transportation, cultural institutions, consumer services, travel, non-profit, environmental engineering, construction, advertising and marketing, and pilot training. A team of Bridgepoint CFOs with industry experience developed the survey.
Disclaimer: Results from this study do not represent global findings or the market but reflect the sentiment of the respondents and companies surveyed.
Need Risk & Compliance Support?
At Bridgepoint Consulting, we understand that it can be difficult to meet rising regulatory demands in a market rife with continually evolving standards. Whether you need help building frameworks for internal controls, regulatory compliance or sustainable governance, our experts are ready to identify and mitigate risk so you can focus on your competitive edge.
Contact us today or learn more about how we can partner for growth at the link below.