Businesses Prepare for New Era of Public Review, 83% Expecting Investigations in Next 12 Months | Your money
Companies are planning surveys in three key areas: doing business and dealing with customers, sustainability / ESG practices, and dealing with public bodies or public procurement 80% believe their business model needs to fundamentally change to maintain or restore competitiveness 97% of companies actively invest in preparedness for future crises, including the use of tools such as AI and analytics to mitigate risk
WASHINGTON, Sep 21, 2021 (GLOBE NEWSWIRE) – The socio-economic loopholes exposed by COVID-19 create a ruthless market, with businesses being watched by governments and the public and little leeway to avoid disputes and investigations into business practices and behavior, according to a new report from FTI Consulting, Inc. (NYSE: FCN).
The FTI Consulting report found that companies were under “extreme” pressure to integrate technology (41%), strengthen their reputation (37%), improve their ESG / sustainability practices (34%) and improve their corporate culture (29%) over the next 12 months. The survey of more than 2,800 executives of large public and private companies in the G-20 countries found that 83% of these organizations are or plan to be surveyed in the next 12 months.
The top three investigative concerns are: doing business and dealing with customers, sustainability and ESG practices, and the relationship with public bodies and government contracts. Thirty percent of respondents identified each of these areas as their top concerns. The service sector and the financial sector were the most likely to report having been subject to regulatory or policy review in the past 12 months (23% each).
âThe ability of businesses to manage crises has been a critical factor in their success during the pandemic,â said Caroline Das-Monfrais, Senior Managing Director and Head of Global Resilience at FTI Consulting. However, COVID-19 has exposed and exacerbated economic and social loopholes – employee well-being, talent shortages, treatment of customers, financial crime and cybersecurity have all been on the business agendas. , and businesses are responding to protect value and build resilience as they look to future growth.
The Resilience Barometer identifies the nature, severity and potential trajectory of these threats, which force companies to integrate resilience on several fronts:
Growing cybersecurity threats: 78% of companies surveyed have experienced a cyberattack in the past 12 months, with phishing attacks increasing among the most common types (34%). Breaches are increasingly damaging, 32% of them experience loss of client / patient data and an additional 30% report loss of third-party information. Class actions and mass consumer complaints: 13% of respondents have experienced it in the past 12 months, and the same percentage expect it to continue over the next 12 months. A third strongly agree that class actions or mass claims are becoming increasingly costly for their business, with 17% of legal fees going to be spent on settling class actions and other litigation. The ‘big resignation’: In the past 12 months, 30% of companies surveyed have experienced a talent and skill shortage, and 68% reported an increase in 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 the corporate culture over the next 12 months.
âThe ever-changing landscape will force companies to take a proactive stance on investigations,â said Edward Westerman, head of the global investigation initiative at FTI Consulting. âHarnessing new technology, data and analytics can help businesses effectively manage an ongoing investigation and mitigate the risk of future crises. “
Methodology The FTI Consulting 2021 Resilience Barometer survey incorporates the views of 2,869 decision makers from large companies in all G-20 countries. Large companies are defined as those with more than 250 employees, or more than US $ 50 million in annual global turnover, or with a balance sheet of more than US $ 43 million. In July 2021, FTI Consulting conducted a quantitative survey of senior and senior executives of private and listed companies. In total, participating companies employ 58 million people, with each company employing an average of 20,000 people.
About FTI Consulting FTI Consulting, Inc. is a global business consulting firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, policy and regulatory, reputational and transactional. With more than 6,400 employees in 29 countries, FTI Consulting professionals work closely with clients to anticipate, inform and overcome complex business challenges and make the most of opportunities. The Company generated sales of $ 2.46 billion in fiscal 2020. In some jurisdictions, FTI Consulting services are provided through separate legal entities that are separately capitalized and managed. independently. For more information, visit www.fticonsulting.com and connect with us on Twitter (@FTIConsulting), Facebook and LinkedIn.
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