Seventy Percent of Chief Compliance Officers Say Third-Party Suppliers Are Not Focused on Minimizing Risk, Consero Survey Reveals

BETHESDA, Md- (Feb. 25, 2015) –  A vast majority of Chief Compliance Officers are concerned about supplier risk, with 70 percent of surveyed executives saying suppliers’ focus on minimizing risk is insufficient, according to a new survey by Consero Group, an international leader in creating high-level, invitation-only events for senior executives.  The results were reported as part of the January 2015 Corporate Compliance & Ethics Data Survey, compiled by Consero Group.

The number of Chief Compliance Officers who are concerned about supplier risk has increased in comparison to Consero’s 2013 survey, in which just 52 percent thought suppliers were not focused on minimizing risk.  The new survey also found that the use of third-party suppliers is increasing, with 44 percent of surveyed executives reporting the number of suppliers they have used in the past 12 months had increased.

“Increasing the use of third parties brings with it greater risk.  And as our survey reveals, an increasing number of Chief Compliance Officers are finding suppliers’ focus on risk minimization to be inadequate,” said Paul Mandell, Founder & CEO of Consero.  “Managing supplier risk will be an important area of focus for compliance departments in 2015.”

Additional Findings Included:

  • Compliance Departments Not Integrated into Corporate Decision Making: Fifty-eight percent of Chief Compliance Officers said compliance departments are not sufficiently integrated into corporate decision making and strategy.
  • Training Programs Are Effective: Seventy-one percent of surveyed executives reported their compliance training programs are effective.
  • Bribery/Corruption Seen as Top Area of Risk: Thirty percent of executives named bribery/corruption as the top area of risk at their company, followed by fraud (19%) and intellectual property (12%).

The January 2015 Corporate Compliance & Ethics Data Survey was conducted in conjunction with Consero’s November 2014 Corporate Compliance & Ethics Forums in the U.S and England. A total of 61 responses were recorded.

About Consero

Founded in 2010, Consero Group is an international leader in creating industry-specific events for senior-level executives in the following areas: Legal, Compliance, Shared Services, Customer Experience, Finance, IT, HR, and Procurement, among others. With operations in the U.S. and in Europe, Consero is best known for transforming the executive experience through intimate, invitation-only programs in a sophisticated learning environment with high-level content. For more information on Consero, please visit www.consero.com.