2018 Compliance Risk Study for Financial Services explores the modular transformation that allows compliance leaders to move at the pace of digital age. To learn more about the study, visit https://accntu.re/2FA2E8l

2. EXECUTIVE SUMMARY
Compliance spending is slated to increase,
despite reductions in headcount
In line with findings over the last four years, 89% of
respondents indicate that investment in Compliance
will increase over the next two years.
To realize returns on technology investments,
Compliance should re-train its people
Three-quarters of respondents see a gap between
skills currently available and those required.
Data quality - a significant barrier to progress
and realization of technological capabilities
One in three respondents (31%) say that data quality issues are
key barriers hindering their organization from delivering on its
key mandates over the next three years.
Compliance is too focused on the key risks
facing the industry today (e.g. cyber risk) and
not focusing on the risks that are now coming
to the fore (e.g. virtual currencies)
A skills gap and data challenge may be hindering a proactive approach
to managing important risks such as the proliferation of virtual
currencies, new concerns about corporate conduct
and a responsible approach to the use of artificial intelligence.
Compliance can no longer rely on adding
headcount to increase its effectiveness
Only 22% of study respondents say they now have
more than 500 people in their compliance function,
representing a 9% drop since last year.

3. 3
KEY
INSIGHTS
89%
Of respondents
expect to increase
investment in
Compliance over the
next 3 years
45%
Claim this to be
the case for talent
transformation
57%
Say Compliance
technology
transformation is their
top strategic
initiative over
next 12 months
Regtech – key to exposing and addressing
the web of risks organizations face
Compliance spend
expected to increase
with technology outpacing
talent as
a strategic response
to change…

4. KEY
INSIGHTS
4
Continual, targeted innovation is key to freeing
compliance talent to stay on pace with evolving
advisory issues
36%
Of respondents
say innovative
technologies is one of
their top investment
priorities today
37%
Believe this to be their
top priority over the
next 12 months, while
33% believe this to be
over next 3 years
… and investing in
innovative technologies
is one of highest priorities
today
and tomorrow

5. KEY
INSIGHTS
The increased pace of innovation and evolving
regulatory landscape dictate changes to a firm’s
mindset, talent, technology and operating model
strategy and deployment
76%
Of respondents
see a gap in their
Compliance
function’s skills to
fully execute their role
as they see it
18%
Only claim
recruitment and
development of skills
is one of their highest
investment priority
today
29%
See Compliance talent
issues as a major barrier
to delivering
the function’s key
mandates
Without the right skills,
compliance’s ability
to realize the potential
and returns of their
technology investments
is compromised

6. THE COMPLIANCE FUNCTION OF THE FUTURE
Using A BUILD, BUY & SUBSCRIBE strategy, financial services firms can
cost-effectively acquire & implement the “right” compliance capabilities to
address their specific needs / situation while future-proofing the FUNCTION
To buy new tools and
technologies (42% to build, 35%
to subscribe to)
50%
Of study respondents to
build in house their new
control processes
(34% to buy, 29% to
subscribe to)
51%
To build talent (recruitment /
reskilling) in house (35% to
buy,
31% to subscribe to)
40%
BUILD BUY

7. THE COMPLIANCE FUNCTION OF THE FUTURE
Using A BUILD, BUY & SUBSCRIBE strategy, financial services firms can
cost-effectively acquire & implement the “right” compliance capabilities to
address their specific needs / situation while future-proofing the FUNCTION
SUBSCRIBE
Use a managed service
for financial crime,
while…
45%
Leverage the model for
surveillance and 40% for
regulatory change
management
43%
Our experience
indicates that
leading compliance
functions are using
a mixture of these
THREE
INVESTMENT
APPROACHES

8. METHODOLOGY
A global quantitative online
survey which explores the future
of Compliance programs within financial
services in Asia Pacific, Europe, North
America and
South America.
The survey was conducted from
December 2017 through January 2018
and covered the Banking, Capital
Markets and Insurance industries. 150
respondents were surveyed from 13
different countries.
Respondents included C-suite,
Directors, VPs, SVPs of
Compliance, as well as
other Compliance Executives.
INDUSTRIES
N=150
83
Banking
34
Insurance
64
Capital Markets
REGIONS
N=150
60
Europe
35
NA
15
South America
40
Asia Pacific

9. In a volatile risk ecosystem, the idea of phasing development across a multi-year roadmap is challenged by the
need for continuous improvement in Compliance’s ability to withstand industry shocks that continually test
whether the function has the right foundational capabilities. To find out more:
DOWNLOAD OUR 2018
COMPLIANCE RISK STUDY NOW
www.accenture.com/ComplianceRiskStudy2018
Or contact:
Samantha Regan – Managing Director
samantha.regan@accenture.com
Ben Shorten – Senior Manager
benjamin.j.shorten@accenture.com
Nesrine Besbes – Senior Manager
nesrine.besbes@accenture.com
Rafael Gomes – Senior Manager
rafael.a.gomes@accenture.com
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2018 COMPLIANCE RISK STUDY
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