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Risk & Compliance

AMR International has an extensive track record in ESG, credit and fraud, and third-party risk management. We have a deep understanding of the challenges and investment opportunities within these sectors. This comes from both our numerous consulting assignments and the operational experience of our team members.  

Risk & Compliance

What we do at a glance:

AMR provides comprehensive strategy support across Risk & Compliance with tailored consulting support within:

We also provide pre-and post-transaction support for investors.

Market insights

Risk & compliance – integral to business success  

In increasingly complex environments with more regulatory and societal pressure, businesses need to manage the risk of doing business. This means complying with regulation and internal standards. They also need to monitor their activities, including new relationships and how they do business.

The ultimate goal is to have an overview of risk across the organisation, in real-time. This will avoid costly events that cause reputational or other damage. With risk as one of the table stakes in many markets, organisations are also seeking ways to reduce the cost of compliance.

Proactive risk management can also bring advantages. These include allowing businesses to broaden relationships by working with qualified suppliers in challenging jurisdictions and the rapid onboarding of third parties such as suppliers and customers.

Users are confronted with a wide and varying range of solutions, ranging from home-grown spreadsheets and non-scalable point solutions through custom software to ERP systems.

Effective risk and compliance continue to require human input but are fast moving towards reliable and predictive analytics. The greatest source of value-add lies in moving the line between human and machine while delivering reliable results. Winning solutions are also those that integrate the most effectively with the often spaghetti-like systems of an organisation.

Shifts in a fast-evolving industry

We see major shifts that are changing the industry. Our focus is on helping providers find winning formulae.

Three major shifts are fundamentally changing the industry:

  • The growing use of cognitive technologies, artificial intelligence, and data analytics to augment, and at times even replace, human-led risk management
  • Increasing corporate investments in data capture and smart devices (e.g. senors, workplace wearables) to better monitor, predict and prevent risk
  • Accelerating regulatory changes (especially around data privacy) and increasing data complexity introduce difficult compliance challenges

 

Risk & compliance providers can win in the future by:

  • Identifying use cases that are well-suited for cognitive technology solutions: where the risk area is critical, large amounts of data are available, and current solutions are not effective
  • Tackling the data complexity generated by a growing number of smart devices to deliver superior, real-time risk management
  • Designing new functionality that automates compliance activities and allows companies to better manage regulatory change and implement enterprise-wide compliance controls

Opportunities for investors

The major opportunity for investors is to identify those solutions which are genuinely differentiated and innovative in the way they address customer use cases and customer frustrations. In some cases, their smart analytics can continue to be supported by human input and analytics – real source of value add.

Third Party Risk Management (TPRM)

AMR believes that Third-Party Risk Management (TPRM) is primed for transformation. The market is highly fragmented and at a relatively early stage of maturity.

What is TPRM?
TPRM is the process of identifying, assessing, and controlling risks presented throughout the lifecycle of an organisation’s relationships with third-parties, and is an attractive sub-segment of the broader GRC (Governance, Risk and Compliance) market.

GRC represents a $36bn opportunity and is forecast to grow at 12% CAGR through 2025.

Why is this sector attractive?
Increasing regulatory pressure, more pronounced risk and cost of failure, and the growing complexity of supply chains are all making TPRM more attractive. Plus, the reliance on 3rd parties is driving the need for better data and software solutions to manage risk. Many firms have multiple systems and processes deployed in a piece-meal manner across their organisations and are looking for more unified and cost-effective solutions.

Who are the suppliers of TPRM solutions?
This market is served by a range of vendors with different core strengths, including large GRC providers, ERP players, professional services firms, and specialist TPRM firms.

Opportunities for investors
The fragmented nature of this market and strong growth profile creates opportunities for strategic trade buyers and private equity.

ESG data – an emerging opportunity

AMR believes that ESG is a substantial, growing market that is here to stay. ESG adoption will remain a priority across the investment value chain, irrespective of market turmoil. With a fragmented supplier landscape and exit paths to industry players, we see ESG as an emerging opportunity for private equity.  Read more

Our experience speaks volumes

For 30 years we have partnered with leading global organizations across the Risk & Compliance industry to guide their transformation and accelerate performance. We also support a wide range of investors with growth capital and control investments. Our team also has operational experience in the sector.

Example projects include growth strategy development, product development support, commercial due diligence, and acquisition search for a broad range of clients, from large data and analytics companies to smaller, point-solution software companies, as well as the investment community.  

CASE STUDIES & RELATED INFORMATION

Growth Strategy: Regulatory and Compliance Software Solutions

Learn how AMR supported a publicly-listed global information services company in its three-year strategy formulation.

CDD: AMR proudly supported an international provider of risk management solutions

Discover how we conducted in-depth interviews and market research while assess the growth potential of the target company.

AMR proudly supported LexisNexis Risk Solutions with its acquisition of ID Analytics

Discover how AMR supported the transaction with buy-side commercial due diligence.

Meet Christine O’Connell, our industry expert on the risk & compliance market

Christine is a Principal at AMR. Her background includes 16 years at Reuters/Thomson Reuters.

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