Corporate India is being propelled to make greater investments in technology for compliance due to turbulent economic conditions, tighter regulatory norms, and deeper concerns around cybercrime and data privacy, according to a survey.
As many as 60 percent of the respondents planned to increase investments in forensic technology over the next one year, and 29 per cent planned to invest over Rs 10 crore to drive digital transformation over the next two years, as per the survey by EY Forensic & Integrity Services and ACFE Mumbai Chapter.
The digital shift within corporate India accelerated during the pandemic to maintain business continuity, manage operations and address risks, EY India said in a statement.
The survey found that apprehensions around data privacy compliance (66 per cent), third party risks (57 percent) and employee fraud (32 percent) have increased over the last year.
Stating that emerging technologies can be pivotal in addressing these threats and enhancing integrity, EY India said the main benefits of using forensic technology in compliance, risk, and legal functions were highlighted by the respondents.
"Organisations have been gradually leveraging technological tools and solutions for regulatory compliance and process improvements...The inclination is high with 29 percent planning to invest over Rs 10 crore to drive digital transformation over the next two years," it said.
However, high costs (32 percent of respondents) and lack of a clear strategy, expertise, knowledge or talent (25 percent) may be potential deterrents in this journey, the survey found.
Commenting on the findings, EY Global Markets and India Leader, Forensic & Integrity Services, Arpinder Singh said: "Digital megatrends are disrupting business strategies, and impelling greater adoption of emerging technologies such as AI, RPA (Robotic Process Automation) and blockchain."
Moving from traditional rule-book methodologies of compliance management to building digitally powered compliance, risk, and anti-fraud programmes is more important than ever, he added.
EY Partner, Forensic & Integrity Services Harshavardhan Godugula said new forms of cyberattacks, privacy concerns, and regulatory oversight are likely to keep increasing despite the myriad of security solutions.
"There has been greater pressure on businesses to better articulate the risks of not investing in digitally enabled solutions and its business value, in a way meaningful to the management," Godugula added.
The survey covered over 100 senior compliance, legal and risk executives from Indian and multinational corporations from June to Dec 2020, EY India said.
It was a part of a global study conducted with more than 1,700 respondents from 21 emerging markets including Brazil, China, India, Kenya, Mexico, Nigeria, Russia, Saudi Arabia, Singapore, South Africa, and the United Arab Emirates