Risk and Compliance Priorities and Opportunities Signaled Under the Administration
NEW YORK, August 21 – While the Trump Administration has voiced plans for regulatory roll-backs, particularly in financial services, chief risk officers and chief compliance officers must maintain a focus on safeguarding their companies against strategic, operational and emerging risks, according to KPMG LLP, the U.S. audit, tax and advisory firm.
“Now is the time for companies to focus on becoming more agile so they can respond to regulatory shifts,” said Kelly Watson, National Service Group Leader for Risk Consulting at KPMG LLP. “This should include determining how to best use emerging technologies to reduce costs and improve risk management and compliance.”
KPMG LLP has identified five risk areas to top companies’ agendas in this time of change:
-Whether the organization has adequate compliance processes to recognize and react to regulatory changes.
-If a review of key compliance processes has been included in the internal audit plan.
-What regulatory changes driving emerging risks should be included in the establishment of internal audit plans.
-Whether internal audit has a point of view regarding the impact of removing or reducing controls on the overall control environment - relaxation of requirements does not mean organizations should eliminate controls established to address them.
-Financial Services – As regulatory changes in financial services loom, some financial institutions have paused on decisions on how to allocate limited resources until they have more clarity. These delays have put a strain on cyber programs’ effectiveness. However, it is important companies continue to make decisions about the direction of their programs as there is no indication breaches will slow down.
-Healthcare – While healthcare faces regulatory change and uncertainty as ‘repealing and replacing’ the Affordable Care Act in some fashion becomes a possibility, some companies have moved forward with additional cyber program investments in light of recent ransomware events such as the wannacry attack. Such events reveal that cyber threats can have a crippling effect on systems and processes supporting healthcare services.
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is
the independent U.S. member firm of KPMG International Cooperative (“KPMG
International”). KPMG International’s independent member firms have 189,000
professionals, including more than 9,000 partners, in 152 countries.