Regulatory environment bad for business, say GCs

The research found that more than two-thirds (69 percent) of respondents found the current regulatory environment made it harder to do business with two in five (39 per cent) saying it had diverted resources from the company's core competencies. Twenty-nine per cent and 21 per cent, respectively, claimed the current regulatory environment decreased profits or impeded growth. 'The sentiment of the corporate counsel surveyed is consistent with many corporate officers,' said Brad Preber, national managing partner of Grant Thornton's Forensic and Valuation Services practice.'On the whole, companies have not yet found the right balance between regulatory compliance, growth and profitability.'

Strengthening procedures

Companies are reacting to the environment with 70 per cent  strengthening policies and procedures (70 per cent) and sixty per cent increasing education and training. Forty-one per cent are also engaging outside advisers/consultants and 36 per cent are adding internal compliance personnel. Only 28 per cent of in-house counsel have implemented software tools, while just 21 per cent have utilised data analytics. Despite the fact that corruption and bribery risk remain at historically high levels, few businesses have increased resources devoted to managing them. Source: Grant Thornton