53% of UK groups turn away clients due to pressure on compliance

Some 53% of UK businesses have been forced to reject potential customers due to a lack of risk visibility, with 61% stating that excessive workload forces them into “reactive firefighting” instead of proactive risk management, according to new research from Dun and Bradstreet.

The study, which looked at compliance decision makers, found that increased pressure on compliance teams resulted in a 28% rise in demand on their time over the past year. 

Despite this, 55% of businesses had no additional budget to dedicate towards compliance activities, highlighting the discrepancy between complying with an evolving regulatory landscape, budget constraints and the need to invest in technology to meet these demands.  

Dun and Bradstreet’s survey also delved into the compliance industry’s “most significant” future-facing challenges, revealing that 48% of UK businesses do not have appropriate Perpetual HYC or Always-On Compliance solutions in place. 

As a result, 52% of compliance teams said their workload relies on inefficient manual and routine tasks. 

According to Dun and Bradstreet, leveraging technology – particularly the power of data insights – will be critical for expediting risk analysis and speeding up intelligent compliance decision making, as 70% of UK businesses noted that automating their operations saved time and reduced cost. 

Respondents also point to how the use of data and automation can lead their teams to have more time for high-value tasks; 64% stated that leveraging automation tools for periodic checks enables them to spend time on more complex or ambiguous cases. 

Stuart Swindell, strategy director of third-party risk and compliance at Dun and Bradstreet UK&I, said: “The regulatory landscape is facing unprecedented challenges as lawmakers continue to react and adapt in response to new technologies and a more global economy. In many cases, these regulations are necessary, like implementing sanctions on countries such as Russia in response to the conflict in Eastern Europe. 

“However, a lack of harmonisation and increasing regulatory demands, coupled with inadequate technology, means compliance teams are forced to invest excessive time and effort into manual tasks. This not only reduces their efficiency but leaves them vulnerable to errors and oversights, which could otherwise be avoided.” 

He added: “The evolving challenges faced by UK businesses are evident, with over half having to turn down new projects due to lack of risk visibility. Yet, by embracing data insights and automation, they can navigate these hurdles and make smarter decisions, which will allow for a more seamless compliance process, and free up time to explore more high-value or growth opportunities.”