Businesses Prepare for New Era of Public Scrutiny as 83% Expect Investigations in Next 12 Months

• Companies Anticipate Investigations into Three Key Areas: Business Conduct and Treatment of Customers, Sustainability/ESG Practices, and Relationship with Public Bodies or Procurement of Government Contracts
  
  
• 80% Believe Their Business Model Needs to Fundamentally Change to Maintain or Restore Competitiveness
  
  
• 97% of Companies Are Actively Investing in Preparation for Future Crises, Including Use of Tools Such as AI and Analytics to Mitigate Risk
  

WASHINGTON, Sept. 21, 2021 (GLOBE NEWSWIRE) -- Socio-economic fault lines exposed by COVID-19 are creating an unforgiving marketplace, with companies under scrutiny from governments and the public and little room to avoid disputes and investigations into business practices and behavior, according to a new report from FTI Consulting, Inc. (NYSE: FCN).

The FTI Consulting 2021 Resilience Barometer report found companies under “extreme” pressure to integrate technology (41%), strengthen reputations (37%), improve ESG/sustainability practices (34%) and improve corporate culture (29%) in the next 12 months. The survey of more than 2,800 executives from large public and private companies across G-20 nations found that 83% of those organizations either are being or expect to be investigated in the next 12 months.

The top three investigation worries are: business conduct and the treatment of customers, sustainability and ESG practices, and the relationship with public bodies and government contracts. Thirty percent of respondents identified each of these areas as leading concerns. The services sector and financial sector were the most likely to report experiencing regulatory or political scrutiny over the past 12 months (23% each).

“The ability of businesses to handle crises has been a defining factor of their success during the pandemic,” said Caroline Das-Monfrais, a Senior Managing Director and Global Resilience Lead at FTI Consulting. “However, COVID-19 has exposed and exacerbated economic and social fault lines — employee wellbeing, talent shortages, treatment of customers, financial crime and cybersecurity all have risen up the corporate agenda, and businesses are responding to protect value and build resilience as they look towards future growth.”