In a recent survey conducted by Gartner, legal, compliance, and privacy leaders have identified strengthening their personal impact on company strategy as their top priority for the year 2024. This focus on personal impact reflects the evolving role of these leaders within organizations, as they are increasingly expected to navigate complex regulatory environments and mitigate risks effectively.
One of the key priorities identified by legal, compliance, and privacy leaders is improving third-party risk management (TPRM). As organizations increasingly rely on external partners and vendors, the need to effectively manage third-party risks has become paramount. This priority underscores the importance of building robust processes and technologies to monitor and assess third-party relationships.
Additionally, ensuring compliance programs can keep pace with fast-moving regulatory requirements emerged as another top priority for legal and compliance leaders. The ever-changing regulatory landscape poses a significant challenge for organizations, requiring leaders to stay informed and adapt their compliance strategies accordingly. By prioritizing compliance program agility, leaders can proactively address regulatory changes and minimize potential compliance risks.
Developing guidance that enables the business to balance risk and business benefit, as well as designing or updating compliance training tailored to employee needs, were also identified as top priorities for legal, compliance, and privacy leaders. These initiatives reflect a broader focus on promoting a culture of compliance within organizations and equipping employees with the knowledge and resources to uphold legal and ethical standards.
According to Stuart Strome, Director of Research in the Gartner Legal, Risk, and Compliance Practice, legal and compliance leaders must collaborate with other business stakeholders to effectively manage geopolitical tensions and new technologies such as generative AI. The role of general counsels and chief compliance officers has evolved to encompass not only legal expertise but also influence, diplomacy, and sales acumen. This shift highlights the increasingly multifaceted nature of leadership in the legal and compliance domain.
The rapid adoption of new technologies, both internally and by third parties, has added complexity to the responsibilities of legal and compliance leaders. In response, leaders are expected to fulfill multiple roles, including lawyers, risk managers, strategists, diplomats, and process builders. This expanded mandate underscores the need for leaders to prioritize their time, leadership style, and management behaviors to drive team performance and influence senior leadership effectively.
Improving TPRM processes and technology emerged as a critical priority for legal and compliance leaders, reflecting the heightened scrutiny of third-party relationships by enterprise stakeholders. With an increasing focus on accountability for TPRM activities, leaders are tasked with enhancing existing TPRM programs to manage emerging risks effectively. The growing oversight from senior leaders and board members underscores the importance of robust TPRM practices in mitigating risks associated with third-party relationships.
In conclusion, legal, compliance, and privacy leaders face a dynamic regulatory landscape that necessitates a proactive and strategic approach to compliance management. By aligning their compliance strategy with evolving regulations, leveraging regulatory intelligence systems, and prioritizing third-party risk management, leaders can effectively navigate the complexities of the modern business environment and drive organizational success.