As organizations face tougher regulations and rising enforcement activity, there is increased need for companies to focus on risk management and compliance. However, according to a recent report entitled "Overcoming Compliance Fatigue" performed by Ernst and Young, incidences of fraud are on the rise.
Based on interviews with more than 2,700 executives in 59 countries, the report outlines how modern organizations still have a significant amount of work left to effectively mitigate risk. According to the report, incidences of fraud increased in ten countries over the past two years, including in the US (16 percent in 2014, up from 8 percent in 2012), China (8 percent, up from 4 percent) and Japan (10 percent, up from 6 percent).
As the economy moves away from the financial crisis, when financial crimes were under tremendous scrutiny, the laws that were developed as a result are seeing lowered levels of compliance.
"There are indications that compliance efforts may be running out of steam and not getting the level of engagement from senior management that is necessary," the Ernst and Young report reads.
With threats such as cybercrime posing unknown risks, compliance with reporting and risk management regulations is of increased importance. In the report, less than half of respondents believed cybercrime was a serious threat and three-quarters claimed their organization had not made any public disclosures over being hacked, despite pressure from regulations.
For these organizations to address the growing issue, risk management and operational staff need access to the right tools at the right time to help win this ever-changing battle. Fraud protection software can protect institutions from potential fraud losses, and can be easily integrated with legacy applications to ensure compliance with increasing regulations.