Survey reveals how the Covid-19 pandemic has significantly raised customer and third-party risks, but also highlights the potential of technology to reshape them.
Each year Refinitiv conducts independent surveys looking at different aspects of customer and third-party risk. We have revealed the true cost of financial crime through its impact on companies, society and the environment. More recently we examined how innovation in data and technology can help to identify and disrupt criminal activity. Last year we focused on the hidden risks in supplier, distributor and partner relationships and this year, inevitably, we look at the impact of the Covid-19 pandemic.
Our survey reflects companies’ difficulties, with 65% of respondents agreeing that the pandemic has forced them to take shortcuts with know your customer (KYC) and due diligence checks. Although Covid-19 has been extremely disruptive, compliance gaps had been a persistent problem long before the pandemic. Our 2019 risk survey found that 49% of third-party relationships had been subject to due diligence checks, compared to 44% in 2021. On a more positive note, our current survey shows a growing awareness of environmental, social and governance (ESG) factors and green crime, suggesting that the pandemic may have created a turning point.
By heightening and exposing risks, the pandemic is also helping organisations to address them. The way to do this is explained clearly in this report.
Access the full report to find out:
- How the pandemic has reshaped risk.
- How technology adoption is raising awareness and detection around compliance gaps.
- Why data, technology and collaboration are so important to #FightFinancialCrime and #FightGreenCrime together.
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