**London**: Natalie Druckman from Certa discusses the challenges of third-party risk management across EMEA and the U.S. in a podcast, highlighting the impact of AI technology, ESG considerations, and the importance of effective compliance in an evolving regulatory environment.
In a recent episode of the podcast “Corruption, Crime, and Compliance,” Natalie Druckman, a representative from Certa, shed light on the complexities of third-party risk management, particularly within the contrasting regulatory environments of the EMEA (Europe, the Middle East, and Africa) and the United States. The discussion highlighted the evolving landscape of compliance, influenced heavily by technological advancements and heightened awareness of cybersecurity and Environmental, Social, and Governance (ESG) considerations.
Druckman noted that companies operating in the EMEA face a more stringent regulatory framework compared to their U.S. counterparts. She elaborated that while U.S. companies might benefit from regulatory inconsistencies at state and federal levels, EU businesses must navigate a mandatory and comprehensive set of regulations, particularly focused on ESG matters and compliance. “A forced labor scandal can sink a company,” she emphasized, indicating that ESG’s significance has now become comparable to that of cybersecurity.
The discussion also touched on the increasing recognition among global corporations of the necessity to address ESG concerns in tandem with cybersecurity and financial risks. Areas such as diversity, modern slavery, and gender pay gaps can have profound implications on a company’s reputation and profitability.
Central to the conversation was Certa’s innovative use of artificial intelligence (AI) to streamline third-party risk management processes. Certa’s approach incorporates various AI capabilities designed to enhance operational efficiency and compliance. For instance, the platform’s design AI allows users to create workflows through plain language inputs, enabling those without technical expertise to dictate processes that the system can then convert into the requisite coding and infrastructure.
Another noteworthy feature is Certa’s Insights AI, which analyses data to provide timely insights into risks and developments. This functionality aims to empower organizations to manage risks more effectively by making data more accessible and actionable.
Additionally, Certa has introduced Recall AI, which facilitates efficient communication with suppliers and customers by referencing previous interactions. This capability enables organisations to generate necessary forms, surveys, and workflows without the need for cumbersome back-and-forth exchanges, while still preserving a personalised touch.
Druckman encouraged smaller and mid-sized firms to take their risk management practices seriously, suggesting that they consider adopting automated solutions like those offered by Certa. By doing so, these companies can enhance their operational capabilities and risk management efficiencies, regardless of their industry or size.
The conversation reflects a growing trend in the corporate world towards embracing technology as a means to navigate the increasingly complex landscape of compliance and risk management, particularly in a climate where cybersecurity threats and regulatory demands are ever more pressing.
Source: Noah Wire Services
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