Businesses Prepare for New Era of Public Scrutiny as 83% Expect Investigations in Next 12 Months
- Companies Anticipate Investigations into Three Key Areas: Business Conduct and Treatment of Customers, Sustainability/ESG Practices, and Relationship with Public Bodies or Procurement of Government Contracts
- 80% Believe Their Business Model Needs to Fundamentally Change to Maintain or Restore Competitiveness
- 97% of Companies Are Actively Investing in Preparation for Future Crises, Including Use of Tools Such as AI and Analytics to Mitigate Risk
The top three investigation worries are: business conduct and the treatment of customers, sustainability and ESG practices, and the relationship with public bodies and government contracts. Thirty percent of respondents identified each of these areas as leading concerns. The services sector and financial sector were the most likely to report experiencing regulatory or political scrutiny over the past 12 months (23% each).
“The ability of businesses to handle crises has been a defining factor of their success during the pandemic,” said Caroline Das-Monfrais, a Senior Managing Director and Global Resilience Lead at
The Resilience Barometer identifies the nature, severity and potential trajectory of these threats, which are forcing companies to embed resilience on more fronts:
- Growing cybersecurity threats: 78% of companies surveyed suffered a cyber attack in the past 12 months, with a rise in phishing attacks among the most prevalent type (34%). Breaches are increasingly damaging, with 32% experiencing a loss of customer/patient data, and a further 30% reporting a loss of third-party information.
- Class actions and mass consumer claims: 13% of respondents experienced these in the past 12 months, and the same percentage expect this to continue in the next 12 months. One-third strongly agreed that class actions or mass claims are becoming more costly for their business, with 17% of legal costs expected to be spent on settlements from class actions and other disputes.
- The “Great Resignation”: Over the last 12 months, 30% of companies surveyed have experienced a shortage of talent and skills, and 68% have reported increased mental health issues in their workforce since the start of the pandemic. Unsurprisingly, 30% are under “extreme” pressure to retain talent, and 29% are under “extreme” pressure to improve corporate culture in the next 12 months.
“The ever-changing landscape will put the onus on companies to take a proactive stance regarding investigations,” said
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Source: FTI Consulting, Inc.