2020 has delivered many unexpected turn of events, which has made many business owners prepare for the worst. Payment experts predict that fraud will continue to rise due to the increase in employees working from home. It’s important that payment platform providers ensure they are meeting risk-mitigation and compliance requirements but also understand the trends surrounding fraud and compliance. It’s not too soon to get ready for the year ahead by taking a look at the anticipated trends of 2021.
2021 Key Risk and Compliance Trends
Implement Compliance Programs with New Technology
In 2020, businesses have encountered more challenges and rapid shifts than ever before. No one expected that the majority of the global workforce would work remotely or how they would keep business systems secure during such a situation. Regulators are encouraging firms to use digitization and automations to fight financial crime. Businesses need a sufficient set of tools to operate and maintain a compliance program that is in line with their risk profile. Implementing these necessary tools and reviewing risk management solutions incase a similar situation happens again should be a top concern for 2021.
Cloud Technology will play a huge role in 2021 as people continue to work from home. This technology provides better agility and less cost for software solutions. It is important that companies provide anywhere-anytime work with decreased costs incase another unexpected situation happens. Experts encourage companies to move the bulk of their business systems to cloud applications, especially since vendors may be more willing to offer more savings post-COVID.
Increase in Internal Risk Management Spending
According to Gartner, there was a 33.3% increase in spending on cloud security in 2020 compared to 2019. Experts expect this to increase in the coming year. With more people working from home, it is important to protect systems from internal threats. Due to COVID-19, employee layoffs, financial insecurity and less direct supervision has increased, making fraud much more likely. Businesses should transition their priority from external security to investing in tools that prevent internal incidents in 2021.
Focus on Audit and Compliance for Investors
Investor scrutiny is expected to increase, causing an increase in audit and compliance activities to ensure investors that controls are in place to protect against internal and external threats. Stakeholders will also expect better risk management data to ensure financial statements are not being altered. All of these activities should be in place to give investors and stakeholders the peace of mind that assets are protected equally. Businesses have learned enough throughout 2020 to better prepare for what could happen in 2021.
How Can You Keep Up?
There’s an overarching solution to help you leverage all of these trends – moving to a one-stop, full-service solution that can help ease the burden of trying to keep pace with the ever-churning world of risk and compliance.