MANAGING THE COMPLIANCE

BURDENA Benchmark Study

Content

Managing the CoMplianCe Burden: a BenChMark Study

IntroductionSummary of major findings

Survey Respondent ProfileJob Level

Respondent Organisation Size

Managing the Compliance BurdenDiversified Workloads

Growth in Administrative Tasks

Other Factors

Compliance Programme OutsourcingProgramme Areas to Outsource

Key reasons to outsource

Unpredictable work cycles and engaging resources quickly

Free senior team members to focus on higher priorities

Perceptions of outsourcing

Best practices on compliance outsourcing

Conclusions and Key Takeaways

About Compliance Managed Services

About The Red Flag Group

45

77

7

910

12

13

1617

19

19

20

21

24

27

29

31

IntroductIonIntroductIon

3

IntroductionThe Red Flag Group recently surveyed 189

compliance professionals from more than 44

industries to learn how they are managing the

compliance burden - the administrative, resource

and time challenge inhibiting compliance

professionals from dedicating their time to

strategic and high priority programme areas.

The survey identifies:

• Which programme areas compliance

professionals are currently dedicating the most

time to, and which areas they intend to focus

their time on over the next year

• Which programme areas currently require

significant levels of administrative support to

properly manage

• What specific challenges make it difficult to

manage the overall department workload, and

• Whether compliance professionals would

consider outsourcing resource-intensive tasks to

focus more freely on high priority endeavours,

and to improve overall programme efficiency

This report contains two parts. The first part

covers survey responses to key questions on

the compliance burden and how compliance

professionals are currently managing these

challenges, including through the use of

outsourcing. The second part contains survey

responses on experiences and perceptions on

outsourcing compliance tasks.

4

SUMMARy OF MAJOR FInDInGSCompliance professionals have a growing set of

responsibilities, from programme development,

to strategy, to audits, to managing third party

onboarding and due diligence.

As part of this growth in responsibility, compliance

professionals are spending significant time

managing administrative, resource-intensive

tasks to support certain programme areas. Over

70 percent of respondents indicated that their

teams spend more than 40 percent of their time

on administrative or resource-intensive tasks that

are needed to keep the compliance programme

running.

Seventy-two percent of respondents indicated

that even experienced individuals within their

departments were spending significant time on

purely administrative or resource-intensive tasks

rather than on more complex, strategic work,

such as programme evangelisation, roadshows,

executive training and risk assessments.

Respondents indicated that compliance

professionals spend the most time on the

following tasks:

• Due diligence (watchlist or database screening,

media checks, reviewing corporate registry

records, transactional reviews)

• Compliance audits, risk assessments and health

checks

• Drafting and updating key documentation (code

of conduct, policies)

• Training-programme administration

• Advising internal groups and departments

Close to 50 percent of respondents indicated that

it would be helpful to outsource administrative

tasks to spend more time on higher priority work.

The following were identified as areas where

outsourcing could be helpful:

• Third-party processing

• Third-party watchlist screening

• Compliance training support

• Investigations support

• Data management and clean-up

These areas involve a significant number of

resource-intensive tasks. Inconsistent global

processes, low headcount, and lack of cross-

functional support exacerbate the challenges of

managing the workload in these areas.

Close to 50 percent of respondents indicated they

are comfortable with the concept of outsourcing

resource-intensive compliance tasks and over

40 percent indicated that they had outsourced

legal and business tasks in the past. The data

gathered suggests that the concept of compliance

outsourcing is a growing trend in addressing

strain and improving efficiency, and could be

a vital option for organisations to manage key

programme areas.

5

Survey reSpondent profileSurvey

reSpondent profIle

6

Survey Respondent Profile

Head of Function

Director

Junior associate

1,000 – 9,999 employees

Less than 100 employees

10,000 – 24,999 employees

500 – 999 employees

100 – 499 employees

50,000 – 99,999 employees

25,000 – 49,999 employees

Over 100,000 employees

Other

Board member or Owner

Senior Manager

Manager

31.1%

15.3%

31.4%

8.9%

15.7%

7.3%

13.6%

7.3%

9.4%

6.3%

7.4%

8.9%

1.6%

15.8%

20%

JOB LeveL

ReSPOnDenT ORGAnISATIOn SIze

7

Managing the CoMplianCe

BurdenManagIng the coMplIance

Burden

8

01

02

03

Managing the Compliance BurdenCompliance professionals are struggling to manage their workloads

and focus on priority programme areas because:

They must manage larger, more diversified workloads as their organisations expand

In addition to a diversified workload, they must manage several administrative, resource-intensive tasks to support certain key programme areas

Other challenges exacerbate this effort, such as inconsistent global processes, lack of cross-functional support, low internal headcount, and others

9

DIveRSIFIeD WORKLOADSFindings

Compliance professionals must now manage:

• Due diligence on potential business partners

• A growing risk universe that includes legal and

reputational risks

• Training a global workforce

• Assessment of global operations

• On-site compliance audits

• Employee screening

• Knowledge and culture assessments

Figure 1

Please indicate the areas of your compliance programme that you currently spend the most time on? (Respondents selected up to five)

• Investigations

• Setting a tone from the top and middle

• Promotion and awareness campaigns for

compliance

• Merger and acquisition due diligence

• Tracking gifts, travel and entertainment expenses

• Maintaining conflict-of-interest disclosures

• Establishing and monitoring hotlines

Survey results reflect the fact that compliance

professionals are now managing an increasingly

broad set of responsibilities, and the priorities of

those responsibilities are shifting:

Current year

Next year

Percentage change

Compliance programme strategy

28.1% 37.5% 9.4%

Compliance audits, risk assessments and health checks

46.4% 54.6% 8.2%

Third-party risk mitigation or remediation

26.8% 34.2% 7.4%

Third-party processing (distributing or reviewing questionnaires, gathering policies and documentation, building vendor data in enterprise resource planning systems or compliance platforms)

24.2% 28.9% 4.7%

Social media administration 2.6% 4.6% 2.0%

Training-programme administration

43.8% 45.4% 1.6%

Mergers and acquisitions 8.5% 9.9% 1.4%

Compliance programme roadshows or programme evangelisation

21.6% 22.4% 0.8%

Current year

Next year

Percentage change

Advising executives or senior leadership

32.7% 29.6% 3.1%

Advising internal groups or departments

43.1% 38.2% 4.9%

Due diligence (watchlist or database screening, media checks, reviewing corporate registry records, transactional reviews)

49.7% 42.8% 6.9%

Processing applications or other documentation

26.1% 18.4% 7.7%

Drafting and updating key documentation (code of conduct, policies)

45.8% 32.9% 12.9%

10

AnAlysis

Aside from confirming the growing workload in

compliance, responses to this question indicate

that compliance professionals intend to more

strongly focus on certain programme areas within

the next year, including programme strategy (up

by 9.4% within the next year), compliance audits

and risk assessments (up by 8.2%), third party risk

mitigation/remediation (up by 7.4%), and third

party processing (up by 4.7%).

On the other hand, compliance professionals

may be looking to spend less time on other

programme areas, such as due diligence (down by

6.9% over the next year), processing applications/

documentation (down by 7.7%), and drafting

documentation (down by 12.9%).

What is interesting to note is that 3 of the 4

programme areas with the highest expected

increase in focus over the next year are all strategic

in nature – tasks typically conducted by senior

compliance professionals as part of advising the

organisation or key departments when making

business decisions. Conversely, all three of the

areas with the lowest potential growth in focus

are administrative in nature - tasks usually

conducted to support an ongoing process or done

in conjunction with certain day-to-day business

initiatives (such as, sending out questionnaires as

part of third party onboarding, or conducting due

diligence on a third party prior to engagement by

the sales team).

11

GROWTH In ADMInISTRATIve TASKSFindings

In addition to having more responsibility,

compliance professionals must manage a

growing set of administrative tasks to support key

programme areas. Close to half of the respondents

indicated that over 40% of departmental time is

spent on administrative, resource-intensive tasks. In

addition, over 70% of respondents agree that even

senior members of the team must spend significant

time on administrative tasks.

How much of your team’s time is spent on compliance tasks that you believe are administrative or resource-intensive in nature?

Figure 2

Greater than 80%

60-80%

40-59%

20-39%

0-19%

35.5%

30.3%

13.8%

16.4%

3.9%AnAlysis

While compliance professionals intend to focus

their time on more strategic tasks over the next

year, a large percentage of their time is spent on

administrative tasks. These administrative tasks are

needed to manage certain key programme areas

– likely areas where active daily support is needed,

such as third party processing, due diligence, and

training programme administration.

Please indicate your level of agreement with the following statement: “Sometimes the more experienced individuals in my team must spend significant amounts of time on purely administrative or resource-intensive tasks, rather than on more complex or strategic work that must be completed”

Figure 3

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

58.6%

13.2% 10.5%

17.1%0.7%

12

OTHeR FACTORSFindings

various organisational issues make executing on

priority programme areas a challenge. Respondents

to the survey indicated that the following issues

can exacerbate a department’s capacity to manage

its workload:

Please identify the top three challenges your organisation faces when managing its compliance workload (Respondents selected

up to 3)

Figure 4

AnAlysis

These challenges make it more difficult to manage

the overall compliance workload, and cause

compliance departments to spend extra time to

ensure certain processes are functioning efficiently.

For example, an inconsistent or poorly embedded

global third-party onboarding process can

create significant extra work for the compliance

department. In large organisations, business and

procurement usually own relationships with third

parties, and expectations are that these groups

will manage third parties through the onboarding

process, with some oversight from compliance

when red flags are discovered. However, in

business units where the process is not followed

closely or is ignored, the compliance team must

spend time rectifying issues if a problematic third

party is onboarded or must manage third parties

through the process themselves.

As a result, we see compliance professionals

spending a large amount of time on third

party onboarding activities (24.2 percent) and

conducting due diligence (49.7 percent); areas

that the business side could have easily helped

with if the organisational onboarding process was

firmly embedded and buy-in for the process was

uniformly established across the enterprise (See

Figure 1).

The easy answer might be to hire a larger

compliance team. But 35.4 percent of respondents

indicated adding headcount is a challenge, mainly

due to costs and problems finding competent

resources in higher-risk jurisdictions where the

Response percent

Creating consistency within regional or global processes and results

45.5%

Using technology to administer key processes

42.3%

Getting buy-in from the business or other stakeholders to participate in the programme

41.3%

Lack of personnel or resources 39.7%

Managing large amounts of administrative tasks

38.6%

Building resources or teams to effectively manage increases in workload

35.4%

Handling sudden increases or spikes in workload

24.9%

Meeting deadlines 12.7%

13

concept of compliance may be less appreciated.

Adding technology platforms to simplify

compliance tasks such as third-party onboarding

is helpful, but only if the technology is easy to

use and the compliance team can get buy-in

from all departments to utilise the technology

consistently (42.3 percent of respondents indicated

that using technology can be difficult and 41.3

percent indicated that getting buy-in from other

stakeholders to participate in the programme is a

challenge).

Compliance professionals are stretched thin

managing a diversified workload and often with

little help. Consequently, they cannot devote

sufficient time to the highest-priority tasks, such

as advising senior management (only 32.7 percent

indicated that this is the area where they spend

most of their time), compliance programme

strategy (only 28 percent of professionals

indicated that they spend most of their time on

this area and 37 percent expect it to take up more

time next year) or third-party risk mitigation (only

26.8 percent indicate this as the busiest area, See

Figure 1).

If teams are stretched beyond their capacity,

tasks will not be completed consistently, issues

will not be rectified in a timely manner, deadlines

will be missed and, ultimately, risks will not be

properly addressed. Compliance professionals

want to spend time on the high-priority tasks they

were hired for and survey results indicate that a

growing number of professionals view outsourcing

as a viable option to manage resource-intensive

programme areas.

14

ComplianCe programme outsourCingcoMplIance prograMMe outSourcIng

15

Compliance Programme OutsourcingOutsourcing administrative compliance tasks,

or “compliance programme outsourcing”, is a

new concept in compliance. Organisational legal

departments and law firms have increasingly

outsourced administrative legal tasks, such

as e-discovery, litigation support, contract

management, and legal research to legal process

outsourcing companies in recent years.

Legal process outsourcing companies are

organisations with delivery centres in lower cost,

english-speaking regions, such as India and the

Philippines, where administrative legal work can

be completed at lower costs by locally trained

attorneys.

According to various publications, the legal process

outsourcing market was valued at close to $2.35

billion as of 2015 and is expected to grow over the

next several years.

Comparatively, fewer firms are offering or

specialising in compliance programme outsourcing.

This is likely because the growing importance of

compliance itself is a relatively new trend, and

organisational compliance programmes are only

now reaching the level of sophistication where

outsourcing makes sense.

The following sections provide responses from our

survey and analysis on the concept of outsourcing

compliance.

16

Do you believe that outsourcing any of the following activities could be useful to your company? (Respondents selected all that apply)

Figure 5

AnAlysis

Survey respondents likely selected these

programme areas as ripe for outsourcing because

they contain activities that can be broken down

into components and easily distributed to an

outside firm to manage.

Here, we can easily see how these programme

areas break down by task:

Screening third parties against a watchlist

• Loading third-party data into a watchlist

application

• False-positive analysis

• Reporting on cases with potential hits

• Escalating hits to the compliance department

Third-party processing

• Distributing questionnaires to third parties

• Following up with third parties to answer a

questionnaire

Response percent

Screening third parties against watchlist 54.5%

Third-party processing (entering new parties into a system, sending out questionnaires, reviewing results, etc.)

44.8%

Compliance training support (providing reporting on employee training results, issuing training courses to employee users, cataloguing certifications)

38.8%

Data management and clean-up 31.3%

Investigations support 29.9%

Document review 23.1%

PROGRAMMe AReAS TO OUTSOURCe

Findings

Respondents indicated that compliance

outsourcing would be useful to support areas

that require many resource-intensive tasks. The

administrative nature of these tasks makes them

prime for outsourcing, where less oversight is

needed and the chance of error is lower.

Based on survey results, third-party screening and

processing, training-programme administration,

data management and investigations support were

highlighted as areas where outsourced support

could be useful.

Response percent

Processing of applications, questionnaires or other documentation

20.9%

Review of company registry records or financials

19.4%

Contract management 14.2%

Acquiring/managing code of conduct/policy certifications

11.9%

Merger and acquisition due diligence 11.9%

Other 7.5%

Conflict minerals declarations review 6.7%

17

• Reviewing questionnaires in foreign languages

• Escalating red flag cases to the compliance

department

• Ordering enhanced due diligence before

onboarding

• Managing renewals

Investigations support

• Reviewing emails and documents in foreign

languages

Merger and acquisition due diligence

• Gathering and organising data on target

company third parties

• Conducting due diligence on target company

third parties

While these areas are essential to a fully functional

compliance programme, compliance professionals

may be able to manage the compliance burden by

outsourcing here.

18

Key ReASOnS TO OUTSOURCeIn addition to reducing administrative workload in

key programme areas, there are other drivers to

outsourcing, including:

• Unpredictable work cycles

• The ability to engage temporary resources

quickly, and

• Freeing up senior team members

Unpredictable work cycles and engaging resources quickly

Findings

54 percent of respondents agreed that it was

difficult to predict their team’s work cycle or what

times of year would be busy, and only 18.7 percent

disagreed with this sentiment. Overwhelmingly,

respondents agreed that preparing for work spikes

is a problem.

Please indicate your level of agreement with the following statement: “The team’s work cycle and/or busy times are hard to predict.”

Figure 6

AnAlysis

In the past, companies dealt with unpredictable

work cycles by hiring new staff. However, adding

headcount requires full-time salary with benefits,

office space and significant amounts of training

before adequate support can be obtained. In

addition, many projects only require temporary

support, such as due diligence following a merger

or acquisition, drafting compliance documentation,

and database screening. Outsourcing allows

organisations to engage resources based on actual

or potential spikes in activity.

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

46%

8%

18%

27.3%0.7%

01

19

AnAlysis

Likely, senior team members are forced to spend

significant time on administrative activities because

headcount across global compliance departments

can be quite small. Since supporting global

compliance processes requires the ability to oversee

employees across regions and exercise cross-

functional influence, more experienced compliance

professionals may hesitate to distribute this work

to junior employees (if they have them).

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

58.6%

13.2% 10.5%

17.1%0.7%

Findings

One of the key drivers for outsourcing is to free

senior members of the team to focus on higher-

priority activities. Over 70 percent of respondents

indicated that senior members of their teams

were spending significant time on administrative

activities:

Please indicate your level of agreement with the following statement: “Sometimes the more experienced individuals in my team must spend significant amounts of time on purely administrative or resource-intensive tasks, rather than on more complex or strategic work that must be completed”

Figure 7

Free senior team members to focus on higher priorities

02

20

Findings

According to the survey results, about 42 percent

of companies are using some form of legal or

compliance outsourcing while 38 percent have

not yet done so. Interestingly, nearly 20 percent

of those surveyed didn’t know if they were using

an outsourced provider or not. It is insightful to

examine why companies are using outsourcing

and, if not, why.

In the past, my organization has outsourced certain compliance or legal tasks to a legal or business process outsourcing firm or organization.

Were you satisfied with the experience and results from the service provider?

Figure 8

Figure 9

Findings

Of those that did use an outside firm, 75 percent

were satisfied or very satisfied with the experience

and only 7 percent were dissatisfied. Satisfaction

is based primarily on quality of work product and

timely delivery.

Findings

On the other hand, it is essential to look at the

reasons why people are not using compliance

outsourcing. The primary reason, by far, is cost of

these services.

It is surprising to see cost as the major barrier to

compliance outsourcing, as many vendors and

firms provide pricing on an hourly or fixed-fee

basis that can be estimated based on the projected

scope of work. This can be less costly than a hiring

a full or part time employee.

Concerns about quality and data privacy are

legitimate reasons to think through before

outsourcing. every organisation should follow a

set of best practices before outsourcing work to a

vendor or outside firm (see the last section of this

report for outsourcing best practices).

Overall, close to half of respondents indicated that

they are comfortable with outsourcing compliance

tasks.

42.1%

38.2%

19.7%

Yes

No

Not sure

Response percent

very satisfied 7%

Satisfied 68.4%

neither 12.3%

Dissatisfied 7%

very dissatisfied 0%

Other 5.3%

Perceptions of outsourcing03

21

What made the outsourcing experience a positive one? (Respondents selected all that

apply)

If you have not used an external provider to provide outsourced support, please indicate the reasons why? (Respondents selected all that

apply)

Please indicate your level of agreement with the following statement: “I am comfortable with the idea of working with a provider of outsourced compliance/legal solutions”

Figure 10 Figure 12

Figure 11

Response percent

Cost 57.1%

Concerns about quality 29.6%

Data privacy concerns 29.6%

no need for it as we can handle all of the responsibilities internally

27.6%

Lack of internal buy-in 26.5%

Unfamiliar with such services 21.4%

Could be seen as the compliance function having failed in their own duties

14.3%

Other 9.2%

Heard poor review from colleagues or peers

5.1%

Strongly agree

Agree

Neutral

Disagree

Strongly disagree

60%

50%

40%

30%

20%

10%

0%

30.3%

19.7%

9.9%

38.8%

1.3%Cost

Qualit

y

Relia

bilit

y

Timeli

ness

Serv

ice

Cons

isten

cy

Other

Best practices on

compliance outsourcing

22

Best practices on

compliance outsourcing

BeSt practIceS on

coMplIance outSourcIng

23

Best practices on compliance outsourcingThe Red Flag Group has a set of recommendations to

ensure successful compliance outsourcing. These best

practices have been developed from over 10 years

of managing due diligence, compliance programme

development, third party onboarding, and database

screening for multinational organisations.

Develop a clear scope of work to set out

expectations for deliverables, turnaround times,

and resources (including location of resources,

language skills and expertise). For example, if

you are outsourcing portions of your third party

onboarding process to a vendor, you should:

• Review your onboarding process with the vendor

before signing any contract or outsourcing any

tasks

• Develop a diagram illustrating the tasks that

you will outsource and those that you will retain

internally

• Develop a “playbook” describing the scope of

work, why certain tasks are being outsourced,

turnaround times for the vendor, key points of

contact on both sides, and protocol should any

issues arise

• Develop a service level agreement within the

contract that mandates the turnaround time for

each onboarding task. For example, you may

require that the vendor team issues a third party

questionnaire within 48 hours of receiving a

request from your organisation, contacts you

within 3 business days if no response is provided

by the third party, and orders enhanced due

diligence based on the score to the questionnaire

or based on your determination of the third

party’s risk profile

• Conduct a pilot programme before extending

the work across multiple regions. Third party

onboarding processes have several moving parts.

you need to ensure your vendor can manage

several tasks and third parties at once, and

that their work product meets the service level

agreements you have defined.

• Require an adjustment period between

the completion of the pilot and “go live”.

essentially, you should reserve the right to

adjust the scope of work or service level

agreement based on vendor performance

during the pilot.

24

Prepare and provide access to all relevant information that the vendor needs to manage

the work. Inconsistencies in your processes will not

be solved simply by outsourcing, and inaccuracies

in data will not lead to quality work product. Take

time to rectify these areas before outsourcing or

check if your vendor has consultants who can help

improve these areas for you. For example, if you

are outsourcing a third party database screening

project, you should:

• Ensure you can pull data from your vendor

systems that contains all the information needed

for accurate screening, such as third party name

in english and local language, country, and

identifiers such as registration number and third

party role

• Submit the data to the vendor in accordance

with your own data security and privacy

requirements. This means sending data to the

vendor by secure file transfer protocol (SFTP),

password-protected spreadsheets and/or by only

sending it to vendor offices located in a region

that imposes the same level of care that your

organisation adheres to

Look for a vendor that can provide expertise beyond just outsourcing. vendors that offer a

product suite of consulting, compliance technology

and training services can provide more holistic

support for an organisation. For example, a vendor

that provides advisory and due diligence services

is much better suited to manage your third-party

process, since they can provide recommendations

on process improvement and simplification before

outsourcing, build a dedicated team to manage your

process and supply enhanced due diligence based

on process outcomes. Organisations should look for

vendors that can provide an integrated solution of

services to support across all programme areas.

Find a vendor with qualified senior managers to oversee each project. Some firms simply

provide a client with low-cost resources that you

must train and manage. A qualified firm should

instead provide a competent senior manager to

oversee projects, train its team, and communicate

with you on a regular basis to ensure project

deliverables meet your expectations and standards.

Select a firm that possesses country knowledge and language expertise. Global

presence and language skills will get you better

results. For example, if your third party onboarding

process has routinely suffered from a lack of

support across multiple regions or business units,

and you have third parties across the globe,

you should ensure your vendor can properly

fill these gaps. vendors should be able to build

teams in key regional epicentres, so that third

parties are screened and managed by resources

that understand local risks, speak the requisite

languages, and can respond to your regional teams

in a timely manner.

Consider the pricing structure the vendor is offering. It is typical to see a per-third party-fee with

third party due diligence and onboarding projects,

and flat fees for one-off projects. Hourly rates can

be used in instances where the scope of the project

is not clear. With any pricing structure, it is necessary

to look at the total costs and see the return on

investment from using an external vendor compared

with hiring other full or part-time staff.

25

ConClusions and Key

TaKeawaysconcluSIonS and Key

taKeawayS

26

Conclusions and Key TakeawaysThe compliance burden is likely to become more

and more difficult to manage, as organisations

continue to expand and regulatory demands

increase. Compliance professionals should

continually review their mission and goals and

realistically think about whether they have

the resources to meet their objectives. While

compliance outsourcing is a new concept, it

may be one of the simplest ways to allow for

competent management of administrative tasks,

while allowing compliance professionals to spend

time on more complex activities that will ensure

the continued health of the organisation.

Key TAKeAWAySCompliance professionals are managing an expanding workload and likely do not have the capacity to singularly focus on strategic programme areas. While compliance

professionals are spending time on priority tasks

such as compliance audits, risk mitigation, and

programme strategy, they need to spend just as

much time on administratively heavy areas such

as due diligence, third party onboarding, and

processing applications.

Compliance professionals indicated that over the next year, they intend to focus more strongly on strategic programme areas. Our

survey results show that the areas with the most

increased focus in the next year are all strategic in

nature – compliance programme strategy, audits,

and risk mitigation, while the areas with lesser

potential focus over the next year are mainly

administrative in nature.

Organisational growth and the increased responsibilities for compliance professionals often means more resource-intensive work to manage. Over 50% of respondents indicate that

teams spend most of their time on administrative

compliance tasks, while 70% agree that even

senior team members spend time on these types

of tasks. A variety of factors are making the

management of administrative compliance tasks

more difficult, from lack of stable processes, to

poor cross-functional support, and low headcount.

Compliance Professionals are looking to outsource tasks in administratively heavy programme areas. Respondents indicated that

outsourcing tasks in due diligence, third party

onboarding, database screening, and training

programme administration could be helpful. The

responses here support the fact that compliance

professionals are focused on trying to spend more

time on strategic programme areas instead.

Compliance Professionals are becoming more comfortable with the concept of outsourcing compliance tasks. While compliance programme

outsourcing is a new trend, respondents indicated

that they are considering outsourcing to help

support their programmes. Forty-two percent

of respondents confirmed outsourcing legal or

business tasks in the past, and over 70% indicated

that they were satisfied with the results. Close to

50% of respondents indicated that they would

be open to outsourcing compliance tasks to a

qualified vendor or firm.

27

About CompliAnCe mAnAged ServiCeSaBout coMplIance Managed ServIceS

28

About Compliance Managed Services

SOLUTIOn OveRvIeWThe Red Flag Group’s Compliance Managed

Services solution provides compliance departments

who have limited resources outsourced

management of administrative tasks.

• Compliance officers can outsource third party

onboarding tasks and database screening work

to The Red Flag Group’s team to manage. We

also provide project management services.

• We have managed third party onboarding

programmes for several Fortune 500 clients. By

outsourcing to us, organisations experience more

consistent global processes, identify issues more

quickly, and have more time to focus on other

priorities.

• Every programme is overseen by a senior member

of our team, who are former in-house counsel,

senior managers and attorneys.

LeARn MORe

To learn more about Compliance Managed Services, visit our resources here:

WebSITe: https://www.redflaggroup.com/compliance-managed-services

COMPLIANCe MANAGeD SeRvICeS FLIPbOOk:

https://insights.redflaggroup.com/managed-services-solution/compliance-managed-services

CASe STUDIeS: https://www.redflaggroup.com/resources

CONTACT US: Sales@redflaggroup.com

29

About the Red FlAg gRoupaBout the red flag group

30

About The Red Flag GroupAs The Compliance Firm®, The Red Flag Group® is where Chief Compliance Officers come for

strategic advice and solutions to make compliance a competitive advantage.

The Red Flag Group® is a business advisory, information services and technology firm that

helps corporations, financial institutions, government entities and SMes manage integrity and

compliance in their business and third parties.

For more information visit www.redflaggroup.com

ComplianceScreening

Investigations

Third Party On-boarding & Management

Compliance Programme

Management

Con�ict ofInterest

PolicyManagement

Certi�cations

SupplierIntegrity

Management

WhistleblowingHotline

ComplianceeLearning

ProgrammeDevelopment

Code ofConduct

Audits &Healthchecks

Pre-Certi�cationAssessments

ManagedServices

Analytics

IntegrityDue Diligence

Information ServicesData & Insights

Professional ServicesGlobal Compliance Expertise

Technology SolutionsCompliance Delivery & Management

31