Businesses in the United Kingdom are presently contending with a multitude of compliance challenges attributable to the constantly evolving regulatory landscape. The swift advancements in technology and the expansion of the global economy have prompted lawmakers to continuously adapt and react, resulting in a myriad of new regulations.
While some of these regulations, such as the implementation of sanctions on countries like Russia in response to the conflict in Eastern Europe, are imperative, they have also created a significant compliance burden for businesses, particularly those operating internationally. According to a recent study by Dun & Bradstreet, over half (53%) of UK businesses have had to decline potential customers due to a lack of risk visibility. This, along with excessive workloads, has led 61% of these businesses to resort to reactive firefighting instead of proactive risk management.
The study also revealed a 30% increase in demand on compliance team’s time over the past year, resulting in 67% of businesses concurring that regulatory demands have significantly increased. Despite these challenges, 55% of businesses have not allocated additional budget towards compliance activities, reflecting the struggle to comply with evolving regulations within budget constraints.
To address these risks, businesses need to harness the power of technology, particularly the capabilities of data insights, to expedite risk analysis and enable intelligent compliance decision making. The study disclosed that over two-thirds (69%) of respondents consider this to be paramount. Furthermore, 70% of UK businesses noted that automating their operations saves time and reduces costs, while 64% stated that leveraging automation tools enables them to focus on complex or ambiguous cases.
Stuart Swindell, the strategy director of third-party risk and compliance at Dun & Bradstreet, UK&I, emphasized the significance of embracing data insights and automation to navigate compliance hurdles and make smarter decisions. He emphasized the inefficiency and vulnerability to errors that manual tasks entail, and he highlighted the potential of technology to streamline compliance processes and free up time for high-value growth opportunities.
In conclusion, the prevailing regulatory environment in the United Kingdom necessitates a proactive approach to compliance management. By investing in technology and embracing data insights and automation, businesses can navigate the increasing demands of compliance and make informed decisions, ultimately leading to a more seamless and efficient compliance process.