Compliance officers are grappling with a number of new threats and challenges, including fraud and cyber risk. Michael Costonis explains in this Insurance Insight of the Week video.

Despite slowing investments in the compliance function, compliance officers remain positive they can continue to deliver on key outcomes, including regulatory reporting, management reporting, adoption of strategic data platforms and data governance.

In efforts to enhance their control environment, insurers generally fall into one of three categories. They are:

  • In remediation mode, stabilizing data architecture and governance of controls.
  • Seeking greater opportunities for automation and integration.
  • Embedding predictive analytics, capturing early benefits from emerging disciplines, or investing in business process outsourcing or industry utilities to reduce costs and increase efficiency.

Greater sophistication leads to the bandwidth to manage new threats.

Watch this Insurance Insight of the Week video to learn which types of risk compliance officers believe will be most challenging within the next 3 years.

Top risks that will challenge the compliance function

Most respondents in our 2016 Compliance Risk Study (81 percent) agree that compliance will need to optimize operations in order to manage a more complex set of risks under tighter resourcing conditions. In many cases, leveraging the power of technology to manage risk, instead of ramping up human capital, could offer a double dividend—reducing cost and enhancing the consistency of controls.

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