Newsletter Archives - Page 5 of 57

NEWSLETTER, GLOBAL

Shifting Trends and Risk Appetite in Asia’s Family Offices

January 23, 2024

A recent survey sheds valuable light on the shifting risk appetite for family offices in Asia. The hunger for risks for these family offices used to be bigger compared to other global counterparts, but there has been a change of late. While a general trend was observed of family offices moving away from cash and towards risk assets, Asia stood out as a unique exception to this pattern.

A family office serves as a private client and family advisory firm that high-net-worth individuals often count on. They are different from traditional wealth managers as they offer exclusive services to affluent families or individuals.

The survey, encompassing family office clients with a collective net worth of $565 billion, revealed an interesting trend that merits our attention. Around two-thirds of the surveyed individuals were based outside North America.

According to experts, family offices in Asia chose risky assets to allocate more funds compared to low-risk assets in the initial part of the year. A notable 44% of their assets are allocated to private and public equity, a stark contrast to the 30-33% held in cash and fixed income. Compared to the family offices in Europe, the US, or Latin America, this difference looks much bigger.

Factors Fuelling the High Risk Appetite for Asian Family Offices

Different factors shaped this risk appetite for family offices in Asia. These include early bets on post-Covid recovery in China and historically low rates of interest. While these factors sparked the initial appetite for risk, the trend evolved with the potential slowdown in China and disruptions in global supply chains. This explains the motive of family offices re-evaluating portfolio allocations.

The contrasting performance of equity markets makes the trend more interesting. While Asian markets, led by Hong Kong’s Hang Seng index and mainland China’s CSI 300, experienced declines, the S&P 500 and Europe’s Stoxx 600 demonstrated robust growth.

Singapore emerged as the global hub for family offices, occupying a prominent place in the evolving market. According to reports, Asia houses 9% of the global family offices, with Singapore leading the list. This country has around 59% of Asia’s family offices, as of 2023. This serves as a testament to the city-state’s proactive regulatory stance and attractive tax environment. While Hong Kong has 14% of Asia’s family offices, around 13% are located in India. Thailand, Malaysia, and Pakistan host the remaining family offices.

Many experts consider Singapore to be a preferred destination for global family offices. This makes it a strategic place from where high-net individuals can access different investment opportunities across Asia.

Seeking Professional Financial Advice from Experts

The shifting dynamics of family offices in Asia demonstrate the resilience and adaptability of wealth management strategies. While global trends indicate a move towards risk assets, Asian family offices are re-evaluating their portfolios in response to regional and global economic shifts.

The IMC Group continues to be a trusted partner for family advisory services. With professionals to assist you in handling finances, you can invest in the right avenues to maximize your returns.

NEWSLETTER, GLOBAL

Trends to Watch: Governance, Risk, and Compliance in 2024

January 10, 2024

Now that we are already into 2024, it’s time to have a look at the significant transformations in Governance, Risk, and Compliance (GRC). With global end-user spending on risk management and cybersecurity projected to reach $215 billion, the dynamics of GRC programs are evolving rapidly. As a forward-thinking business, you would be interested to know about governance risk management and compliance trends and seek professional solutions from experts.

It’s time to explore the key trends that will shape the GRC landscape this year.

AI Revolutionizing GRC

2023 was a year marked by the mass adoption of generative AI. Now, the spotlight shifts to the integration of AI into GRC practices. In GRC, AI is set to play a crucial role in risk assessment planning, threat intelligence, fraud detection, and regulation monitoring. Besides, AI is likely to streamline control rationalization, facilitate ‘Dynamic Strategic Decision Making’, and automate testing with risk modelling at its core.

Connected GRC Strategy for Enhanced Visibility

Risks transcend traditional boundaries in an interconnected world. For organizations, it’s imperative to evolve from having isolated approaches to a connected strategy for GRC. However, just 20% of organizations currently have fully integrated functions. For effective risk management, the urgency of having a unified GRC platform encompassing audit, cyber, risk, compliance, and ESG functions is more critical.

Turning Risks to Rewards through Continuous Control Monitoring

Traditional control testing and monitoring fall short in the face of evolving organizational complexities. A study involving 500 risk leaders revealed that 70% consider access to optimized real-time alerts to mitigate the effect of serious risk events significantly. The evolving complexity of organizations renders traditional control testing and monitoring insufficient.

Operating in 2024, businesses need to prioritize real-time risk visibility and continuous control monitoring. This approach strategically monitors and tests security controls, detecting risks, issues, and potential threats automatically from diverse sources of data.

Proactive Compliance as a Business Imperative

The True Cost of Compliance report highlights an 18.8% surge in financial crime compliance expenses since 2020. Tackling such regulatory changes accompanied by compliance costs requires organizations to adopt a proactive stance. This involves leveraging AI on a centralized platform to automate recommendations and integrate enterprise systems with effective compliance and risk management systems to uniformly view compliance.

Cyber Risk Optimization for Resilient Enterprises

With the global cost of cybercrime expected to reach $9.5 trillion in 2024, organizations, especially in critical sectors, are bracing up for the battle. Integrating analytics, automation, continuous control monitoring, and AI into cyber risk management strategies can help. Businesses should vouch for initiatives like quantifying cyber risk exposure, and implementing continuous, and harmonizing controls.

Third-Party Risk Management Takes Center Stage

Amidst global threats, third-party risk management will gain prominence in 2024. For organizations, it’s imperative to have a unified source of truth to navigate multi-tiered risks. Continuous third-party risk identification and monitoring are crucial for a resilient third-party ecosystem. This requires better coordination across functions.

Better Resilience Can Define Risk Management

Better resilience and risk management defines the line of defense for companies in risk management. It’s imperative to establish tolerance levels and establish risk appetite to manage risks and rebound quickly in case of an incident. The business strategies of organizations largely revolve around this in 2024.

Gaining strategic advantage by quantifying non-financial risks

Non-financial risks, including misconduct and cybersecurity breaches, continue to be potential threats. Organizations need to calculate the expected value of risks in monetary terms to quantify the challenge. Businesses should use quantitative methods to get a strong network for risk modelling.

Integrated Platforms for Simplifying GRC

Modern cloud platforms go a long way in simplifying GRC with intuitive interfaces. This offers adequate scalability and elasticity. Such platforms are capable of unifying risk and compliance practices into a single source of truth. It fosters faster decision-making and enhances the trust of stakeholders. Low-code/no-code platforms empower GRC teams, offering agility, productivity, and innovation.

Empowering The Frontline in Risk Management

With the spotlight shifting to the frontline in risk management, it’s crucial to delegate more responsibilities to the frontline along with comprehensive training and tools. Advanced GRC technologies, including conversational interfaces and AI/ML, will streamline frontline engagement.

The IMC Group remains committed to empowering organizations with governance risk management and compliance solutions to explore the ever-evolving GRC landscape. With professional assistance on the side, businesses can secure their operations as they stride ahead.

NEWSLETTER, GLOBAL

Insights from COP28: Shaping the Future of Global Climate Action

January 10, 2024

As we reflect on the conclusion of COP28 in Dubai, it’s imperative to take a look at the key takeaways that are likely to shape the future of global climate action. This event was hosted under the CEO of a prominent UAE-based state-owned oil company, Sultan Ahmed Al Jaber. The insights are likely to shape strategies governing ESG for Businesses in the coming years.

Here are the key insights from COP28 that readers would be interested to know.

The Move Towards Sustainable Energy Sources

In a historic move, around 200 countries decided to sign a new climate deal. This strategy is to emphasize a shift “away from fossil fuels in energy systems in a just, orderly and equitable manner”. While the demand to “phase out” fossil fuels faced opposition, this agreement encourages countries to contribute to global efforts to achieve net zero by 2050. The new strategy involves a shift away from fossil fuels and embracing sustainable energy.

Debate over the Climate Deal

The agreement can be deemed as imperfect, with critics voicing their concerns about the loopholes that still allow the production of fossil fuels. Eyebrows were raised on the inclusion of carbon capture and storage technology. Critiques questioned the global effectiveness of this technique. A strong plea was raised to re-evaluate the extensive approach of planting trees, as the focus lay on genuine efforts to reduce emissions rather than going for greenwashing tactics.

Challenges with Climate Finance

The conference opened with a focus on the financial challenges of climate change, particularly in developing countries. Although a climate damage fund is necessary, the pledges received are far from satisfactory. Notably, $17 million was committed by the US, while Germany and UAE promised $100 million each. This marks the urgent need for larger financial contributions, particularly from key players like China.

Commitment to Renewable Energy

More than 100 nations have committed to grow their renewable energy capacity three-fold by 2030. This is an ambitious goal that calls for faster development of solar and wind-powered projects. These projects are largely encountering local opposition and supply shortages. The growth trajectory of the industry looks promising despite these challenges.

Reducing Methane

The Global Methane Pledge gained support from over 150 countries, aiming to reduce methane emissions by 30% by 2030. Major countries emitting methane outlined viable strategies. The involvement of the public sector was significant, with gas and oil companies pledging to reduce methane generation to near zero by 2030. A substantial fund was also announced to support methane abatement projects in developing economies and emerging markets.

Failure of Carbon Offset Negotiations

Efforts to establish new rules for carbon offset trading faced a setback. The deal was rejected by the Latin American Ailac bloc, Mexico, and the EU. Talks will resume in 2024, presenting a critical opportunity at COP29 in Azerbaijan in 2025.

Why Do Companies Need ESG Services?

Post-COP28, national policymakers are likely to translate these climate priorities into legislative actions. Beyond oil and gas, other industries will be closely monitoring and adapting to the evolving regulations, considerations on supply change, and ESG norms. Forward-thinking businesses consult professionals like the IMC Group for ESG Services. With dedicated assistance, businesses can avoid reputational and legal challenges, embracing sustainability practices in every department.

NEWSLETTER, GLOBAL

Navigating the Complexities of Global Payroll: Strategies and Solutions

December 13, 2023

The efficiency and compliance of global payroll services go a long way in shaping the evolving environment for international businesses. Forward-thinking organizations are striving to retain talent and carve a positive image for themselves in the market. With global payroll solutions from established teams of experts, successful companies are streamlining their operations.

According to the ADP Global Payroll Survey of 2022, payroll data has a critical role to play in organizational decision-making.

As much as 98% of organizations are reliant on this data for cost management strategies
97% of the organizations shape their growth strategies based on payroll data
81% of businesses use payroll data for facilitating DEI (diversity, equity, and inclusion) strategies

While the value of payroll management services is undeniable, organizations continue to encounter challenges in this pursuit. Around 72% of businesses believe that they need to upskill their payroll staff while adapting their current operations to fulfil the changing working conditions across the globe.

Also, around 50% of businesses are grappling to find external talent for their key payroll management positions.

The IMC Group is committed to addressing these challenges and helping organizations leverage accurate and streamlined information. Besides offering global mobility services, we deliver sophisticated global payroll services to different players in the industry.

Now, we will take you through the common challenges in global payroll management.

Common Challenges in Global Payroll Management

For enterprises, the key challenges in global payroll management that demand strategic solutions include compliance, complexity, and consistency. Let’s take a look at these challenges in detail.

Complexity

In the first place, the task of operating payroll processes in different countries is a complex task, given that your team needs to address specific regions within each territory. For instance, your team should adhere to multi-governmental norms, banking systems, regulations, and protocols for data security. Besides, they need to address the individual needs of their clients. The challenges arise when it comes to coordinating a single system to record information and carry out the necessary administration. Outsourcing global payroll services is a viable solution to address this constraint.

Compliance

Remember, regulatory norms across different countries are constantly evolving. How well are you poised to stay abreast with all these compliance norms? When you deal with payroll management in multiple countries which aren’t centralized, the compliance challenge intensifies. Experts habitually count on advanced payroll management systems to automate these tasks. Ensuring fair labor and equal pay, your organization can adhere to tax norms and other regulatory requirements.

Consistency

HR teams managing global payroll often struggle to maintain consistency. While you remain obsessed with one area, the other domains demand attention. For instance, teams focussing on the experience of employees by streamlining payroll often find it challenging to collect large-scale data. On the other hand, payroll management teams prioritizing data often end up faltering with their operations. Ultimately, this results in potential frustration for the staff.

Expert Recommendations to Streamline Payroll Processes

The process of payroll management keeps evolving, considering global regulations, local laws, and business priorities. These aspects often trigger significant shifts in operations related to global payroll management. No wonder, why businesses need streamlined solutions to scale up and meet the future requirements in their respective industries.

Here are some of the common components of global payroll solutions.

Standardizing Processes: A standardized payroll management solution should seamlessly operate across multiple markets across the globe under different government regulations. Besides, it should help your organization with a single system to maintain records capable of comparing and combining data.
Automated Systems: Outsource payroll management tasks to eliminate manual work like compliance checks, data entry, or running reports. This goes a long way in eliminating errors and freeing up your workforce to tackle other projects on priority.
Unifying the System: Embrace a system capable of accessing multiple sources of data to integrate valuable information into one solution. This will reduce the complexity of the organization across departments.
Data Security: Get a payroll solution that verifies employee data and keeps it secure. For instance, regulatory norms in the EU require data consent to be provided freely, and no business can ever assume the same. Thus, organizations need to take adequate measures to protect data and delete it if necessary.

In reality, every business is unique. Even businesses operating in the same market may have specific payroll management requirements based on size, location, and other aspects. This calls for highly tailored global payroll management solutions from experts. It makes sense to work closely with one of these service providers.

Best Practices to Enhance Payroll Performance

The IMC Group suggests some of the best practices to enhance payroll performance to streamline global payroll solutions. Focus on these best practices, as recommended by our experts.

For Employees: Make payroll easy to use, while enhancing transparency by offering self-service options to empower employees.
For Stakeholders: Stakeholders need to understand workforce trends and optimize the use of resources by integrating multiple sources of data.
For Practitioners: Practitioners need to be consistent during the onboarding process and get their processes optimized. The secret to success lies in prioritizing value-added activities over manual work.
For Organizations: Make data-driven decisions, as you collect, curate, and analyze payroll data. This will significantly help you create insightful, intuitive, and proactive processes.

Outsource Your Payroll Management Services

Successful organizations understand that effective and accurate payroll services ensure better employee satisfaction, streamline internal processes, and mitigate compliance risks. The IMC Group continues to be your reliable partner for handling global payroll management services. For Effective International HR Outsourcing and global payroll management, you can reach out to us.

NEWSLETTER, GLOBAL

Finance and Accounting BPO Market Insights: Growth Trajectory till 2029

December 13, 2023

The global Finance and Accounting BPO Market looks in good shape, and reports reveal that this sector is likely to witness a healthy growth trajectory at least till 2029. Our in-depth analysis, in collaboration with esteemed industry leaders, portrays a comprehensive image of the current and future market trends. This will help you get actionable insights that will facilitate informed decision-making. Before we delve into the growth trajectory, have a look at the top reasons to outsource finance and accounting services to dedicated professionals.

Market Overview

A recent report exploring the key fundamentals reveals that the Finance and Accounting BPO Service market is poised for substantial growth by 2029. In the study, experts deployed robust analytical tools to obtain a realistic insight into this growth potential. These include PESTEL, SWOT analysis, and the opinion of prominent leaders in the industry that presents a comprehensive examination of the dynamics in the market.

Key Players

The report features major players that have been shaping the Finance and Accounting BPO industry. It carefully outlines the contribution of each member, which elicits a data-driven perspective of their performance.

Market Segmentation

The report also explores essential market segments that offer a holistic understanding of the Finance and Accounting BPO industry.

Based on product type, the market can be segregated into:

SME (Small and Medium Enterprises)
Large Enterprise

Based on product application, the market segregation includes:

Business Support Outsourcing Service
Specific Functions Outsourcing Service
Universal Terminal Outsourcing Service

Key Highlights of The Finance and Accounting Business Process Outsourcing Service Report

The Finance and Accounting BPO sector has witnessed a notable trend where key players are allocating substantial funds for R&D and cloud computing activities. The focus largely lies on innovation, which pacifies the development of the industry at every stage. This explains the value of remaining at the forefront of technological developments.

Detailed study of the extent of competition in the industry
Tentative volume and market value of bookkeeping and accounting business process outsourcing service finance
Using tools like Porter’s Five Forces Analysis and SWOT for market analysis
A comprehensive examination of the growth factors, penetration, and size of the global market
Growth forecast of the accounting and finance business process outsourcing market
A detailed study of service drivers, opportunities, constraints, gaps, obstacles, strengths, and challenges in the market

The Value of Outsourced Accounting and Bookkeeping Services

As evident from the report, forward-thinking players will be increasingly outsourcing their accounting and bookkeeping services. The IMC Group continues to be your trusted partner to meet specific requirements. We have set benchmarks in the industry, offering customization options to offer a comprehensive assistance to businesses in accounting and bookkeeping. We look forward to empowering your strategic decisions with our professional assistance.

NEWSLETTER, GLOBAL

Top 3 Compliance Challenges to Address in 2023

November 28, 2023

Compliance leaders find themselves at a crossroads in 2023 with a plethora of challenges to address. Amidst political tensions, economic volatility, and a competitive labor market, they have little resources at their disposal, with more to achieve. No wonder compliance leaders heavily rely on established service providers for governance risk and compliance. Standing in 2023, three pivotal compliance function trends demand strategic attention. These involve embracing increased investments in technology, adapting to changing labor markets and working on tighter budgets.

Prioritizing these challenges, compliance leaders need to optimize their staffing decisions and expenses, adjust existing budgets, and take care of optimal productivity in their departments. Besides, strategic investments in technology are to be made as required.

Optimizing Budgets Amid Economic Strain

With rising interest rates and fears of yet another recession looming, organizations are reeling under the pressure to operate within more constrained budgetary restrictions. Compliance leaders find themselves grappling with increased workloads while respecting regulatory norms stemming from the pandemic. They need to maximize efficiency while maintaining cost efficiency.

Industry experts focus on retaining personnel, given that a substantial part of compliance budgets is necessary for staffing. Besides, industries have witnessed a surge in interest in technology solutions, which is largely driven by the push towards automation. This has turned out to be a pivotal factor in augmenting productivity during economic depressions.

Adapting to Evolving Labor Markets

Compliance departments have significant decline in the number of FTE (full-time employees) since 2020. This trend is likely to dominate the industry till 2023. The challenge seems to have intensified with intense geopolitical tensions, greater regulatory scrutiny, and a competitive talent market. This explains why organizations are finding it increasingly challenging to retain existing staff or scale up their departments.

Addressing this crisis calls for an innovative approach to retain talent and maintain workflow efficiently.

Technology Investments on the Horizon

In response to growing inflation rates and a fiercely competitive labor market, compliance leaders are strategically allocating resources toward technology. Technology is likely to be one of the biggest domains for expenses in 2023. Organizations are looking forward to investing in solutions like managing hotlines, risk management, and training for compliance and ethics. These are some of the emerging focal points for investment. Many compliance leaders simply don’t depend on capital but are banking on technology to realize their goals.

Ensuring Compliance Through Enterprise Risk Management Solutions

Amidst uncertainties and challenges in the global business ecosystem, enterprise risk management solutions have emerged as indispensable tools like Corporater for compliance leaders. ERM solutions are a critical component of the recommended technology investments by experts in 2023. It offers a holistic approach to identifying, evaluating, and mitigating risks. These solutions leverage advanced analytics and automation to help compliance teams sail through the evolving regulatory landscapes seamlessly.

IMC and Corporater: Innovating Compliance Management and Tracking Solutions

The IMC Group continues to be a reliable partner for ERM solutions. From managing hotlines to enhancing ethics training and strengthening risk management systems, a professional hand from this established team ensures sustainable compliance resilience. We offer a comprehensive range of services in partnership with Corporater to empower organizations to make informed, responsible decisions while being risk-aware, ensuring sustainable growth.

Corporater is a global software company that offers integrated solutions for governance, risk, compliance, and performance management to medium and large organizations worldwide. Top Fortune 500 companies use their solutions.

IMC has partnered with Corporater to offer efficient and effective business solutions to companies worldwide. Along with Corporater, IMC assists in overcoming various challenges, and it offers a comprehensive solution to manage all aspects of business governance, including performance, risk, compliance, policies, standards, and audits.

NEWSLETTER, GLOBAL

Effective Tools and Methods to Evaluate Business Risk

November 27, 2023

Walking in the shoes of a CEO or business head, there’s no denying that the digitized business landscape presents a plethora of risks to your business. Whether you are a startup or the leader of a conglomerate, it pays to draw a strategic line of defence to mitigate these risks. Forward-thinking organizations adopt governance risk and compliance software early on to address the challenges using sophisticated technologies comprehensively.

Well, risk assessment continues to be a strategic tool for businesses regarding decision-making. A meticulous and structured approach makes the strategy effective. Let’s take a look at the tried-and-tested tools and methods to assess and mitigate business risk.

What Are The Different Stages of Risk Assessment?

Successful businesses come up with a holistic approach to risk assessment, evaluating the following elements:

1. Identifying Risks

In the first place, organizations need to identify the risk. This process involves understanding the potential drawbacks or problems that the business might run into. A strategic evaluation helps in identifying these risks early. Accordingly, the business can allocate resources and come up with an effective strategy to mitigate the risk.

2. Quantifying the Risk

Once the crisis has been identified, businesses work on quantifying the risk. This implies that you need to assess their likelihood of happening, along with the potential impact. Experts recommend tools to evaluate historical data, understand statistical models, or study simulated situations to elicit valuable insights. Once you quantify the threat, you can prioritize different goals and work on the solution.

3. Prioritize the Risks

The next logical approach for you is to prioritize the risks to take action. Organizations need to evaluate the threats, prioritize them, and eventually determine the ones that they should address first based on their significance.

Established companies specializing in enterprise risk management solutions deploy instruments such as risk matrices. Tools help them prioritize the risks based on their threat potential, which helps them recommend strategic solutions.

4. Weigh Each Risk

As a part of the risk prioritization process, it’s essential to understand the relative magnitude of each risk against others. Based on the risk appetite, businesses need to address the situation.

Therefore, the best way to approach the situation is to compare established benchmarks in the industry, predetermined threshold, and past experiences to decide the most suitable way to respond to the threat.

5. Risk Mitigation and Management

The next stage requires businesses to mitigate and manage the risk. This is where you need to make strategic decisions and address each risk. Considering the intensity and nature of these risks, you need to deploy different risk management mechanisms like changes in business strategies or insurance. With these defence tactics in place, businesses can absorb the impact of the threat.

6. Monitor the Situation and Review it

The nature of risks tends to vary and fluctuate based on time and situations. This justifies the importance of regular feedback mechanisms, audits, and third-party reviews. With consistent monitoring, businesses can adjust their strategies to the changing conditions.

Best Risk Assessment Methods for Businesses

1. Qualitative Assessments

This type of assessment is based on non-numerical data, which is primarily descriptive. It is applicable in scenarios where businesses find it challenging to gather numerical data. Qualitative assessments work wonders while capitalizing on the power of experience, intuition, and expertise to evaluate risks.

Under qualitative assessments, businesses can adopt different techniques like SWOT analysis. Here, they explore both the external and internal elements that impact their decisions or projects. It helps in identifying their threats, opportunities, strengths, and weaknesses.

Also, some businesses use the expert judgment method, which works on insights from those holding expertise. You also have the Delphi method, which involves a structured dialogue among experts.

2. Quantitative Assessments

This is where businesses work extensively on numerical data. Quantitative assessments involve financial, numerical, and statistical analyses, where they gain a more data-centric or systematic perspective on the threats.

Some techniques under quantitative assessments include Monte Carlo simulation, decision trees, and sensitivity analysis.

3. Other Types of Assessments

Beyond qualitative and quantitative analysis, businesses also need to deploy other types of risk assessment mechanisms. These include:

Scenario Analysis: This method involves evaluating businesses by considering different situations that may arise in the future. With this approach, businesses can evaluate the best, worst, and most probable situations. Thus, they gain adequate insights to visualize and weigh the potential rewards and risks.
Stress Testing: Stress testing is another approach where businesses scrutinize their potential vulnerabilities in a particular system. The models are designed to emulate drastic conditions. Accordingly, they work on the best way out.
Comparative Risk Assessment: A comparative perspective is used in this approach where businesses compare potential risks against each other. Thus, they can detect the threats that require immediate attention. Generally, this becomes vital when businesses run out of resources.
Hybrid Risk Assessment Method: Under this mechanism, businesses need to prioritize adaptability. At times, no single technique can bail you out of the threats. This requires you to use both qualitative and quantitative risk management strategies to mitigate the threat. Since more than a single method of risk mitigation is involved in this approach, it is known as a hybrid risk assessment method.

Deciding on the Right Risk Assessment Approach

Working closely with an established professional is the key to assessing your business risk. The IMC continues to be one of the best companies for governance risk management and compliance services. With professional backing, businesses can strategically choose the right combination of risk-mitigation strategies. Prioritizing the objectives and stature of your business, the experts can show you the way through troubled waters. Our clients can benefit from our expertise in risk management combined with Corporater’s advanced Governance, Performance, Risk and Compliance software, resulting in a comprehensive, top-tier solution.

Corporater is a powerful Business Management Platform (BMP) software that helps organizations create a digital blueprint of their enterprise, thoroughly view their business, and operate efficiently as a connected enterprise. All solutions built on Corporater BMP can be seamlessly integrated or used independently as purpose-built point solutions.

IMC has partnered with Corporater to provide end-to-end technology-enabled managed services, assisting businesses with their market-leading GPRC software solutions.

NEWSLETTER, GLOBAL

Why is Digital Transformation about People and Not Just About Technology?

November 12, 2023

While forward-thinking businesses largely focus on digital transformation, it’s crucial to note that success on the digital front hinges largely on people, not on technology. A balanced blend of human ingenuity and technology defines the path for leading businesses embracing digital transformation. The core of this approach is to inspire employees to think differently about problems. They should use technology as a means to realize their creative solutions. While digital transformation services from established professionals can propel you to success, it’s imperative to understand how this transformation involves your manpower.

The Focus lies on Focusing on Products, Systems, and Applications (PSAs)

Entrepreneurs and IT leaders often focus on products, systems, and applications as they explore their digital journey. Usually, they consider the benefits that the new technology brings to the table. However, this is a conventional path and often falls short in the digitized business ecosystem. Companies providing digital transformation services recommend bringing about a shift in mindset to encourage employees to counter the traditional modes of thinking.

Remember, every digital transformation should consider some fundamental questions at the outset.

What specific business challenges will these changes resolve?
How will this transformation differentiate us in the market?
What are the expected business outcomes?
To what extent is a mindset shift required for digital transformation success?
What thought patterns, behaviors, and processes need revamping?

Apart from this, leaders should also consider:

Whether or not the technology is going to establish a foundation for the company’s market share, innovation optimization in the future, and differentiation
How leaders can use the technology to lead their teams to success
How they can provide the necessary training to stride ahead
How do they anticipate this initiative will benefit the company and its team members?

For a successful digital transformation, these questions serve as the foundation. Any change should directly improve business operations, whether it’s a new tool or process. This should enhance customer experience significantly.

For example, a company offering digital transformation services may deploy new technologies like machine learning or artificial intelligence not just because they are trendy, but capable of enhancing the workflow of their clients, resulting in better operational efficiency, saving time, and building stronger relationships with customers.

Consider changes in behaviour and thought patterns

Considering changes in behaviour and thought patterns is crucial since it presents us with a fundamental insight. Digital transformation largely depends on shifts in thought patterns and behaviours. This results in a realignment of cultures, rather than the technology being used in the process. There’s no denying that technology keeps evolving. However, if employees fail to adapt to their underlying behaviours and thought patterns, the technology will prove to be futile. Rather, employees might consider it to be a burden and not a solution to boost their efficiency.

This requires leaders to try and bring about a shift in the thought patterns and behaviours of the employees. For example, your staff should consider daily communication to be more fluid and collaborative. Being the leader, you must encourage a culture defined by frequent interaction with colleagues for questions, answers, and fresh perspectives.

With these behavioral shifts in place, introducing the new technology solution becomes more effective. Also, leaders should ensure that their employees understand the reason behind incorporating new technology. This, along with the mindset and behaviours of the employees, will help them understand the value that the solution brings to the table. This makes the technology likely to be successful for the organization.

Explore the existing digital intelligence mindsets of your employees

One of the most effective strategies to encourage shifts in behaviour and mindset in employees is to tap into their existing digital intelligence. Many employees already cultivate a digital mindset in their personal lives. Embracing technology makes them more efficient on the professional front.

In the digital transformation services industry, leaders should guide their teams to grow this mindset to the workspace. So, leaders should encourage employees to recognize that they can do the same within the organization as they do in their daily lives outside work. The more you support employees in bringing their innovation mentality to work, the more innovative your organization becomes.

The truth is that digital transformation is ever-evolving, and more changes are likely to come up in the future. Unless you associate digital transformation with your people, the term continues to remain abstract. When leaders initiate a digital transformation initiative in the context of digital transformation services, their priority should be to unpack the term. This will encourage a shift in the behaviour and mindset of the employees. Leaders need to lay the groundwork for a successful digital intelligence strategy. This approach will genuinely drive change and innovation in the organization.

The IMC Group continues to be a trusted company, partnering with global organizations to assist them in their digital transformation journeys. Reach out to us and let’s discuss how you can streamline your operations as you eye digital transformation.

NEWSLETTER, GLOBAL

How Does ESG Create Business Opportunities?

November 11, 2023

Recent years have witnessed ESG advisory firms gain significant traction, showing businesses the way towards sound Environmental, Social, and Governance practices. Businesses, however, are apprehensive about pursuing their ESG goals, considering increased costs. Well, this fear isn’t justified, given that a proper ESG approach can significantly reduce costs and drive the growth of revenue. This explains why successful businesses work closely with established ESG advisory firms to boost revenue streams and reduce costs.

How can ESG mitigate risks while lowering costs?

A disciplined and systematic stance in embracing ESG principles can reduce business risks significantly. This also curtails operational costs.

In the 21^st century, businesses have undergone a digital transformation. There’s no denying that the evolution of their digital maturity was a slow process. Similarly, large companies, with their complexity and scale, may require time to realize the full potential of ESG. It is a transformative force having long-term implications. It’s not a quick fix for short-term financial results.

Increasing your revenue through ESG

Regulatory norms often drive ESG adoption by companies. Other factors driving ESG adoption include cost reduction and mitigating risk. It also presents the potential to drive revenue growth. This remains an uncharted territory for many businesses. However, successful companies like Unilever have stood out by embracing ESG policies.

Their approach to embracing ESG helped in making cost savings. Unilever introduced the concept of “Sustainable Living Brands” (SLBs), which embraced strong social and environmental purposes. By 2020, nearly half of Unilever’s sales came from SLBs. Most importantly, there was an impressive 70% improvement in SLBs compared to the rest of the business. As a result, Unilever was able to declare its intention to phase out old brands that lacked a clear purpose. This approach shows how businesses can prioritize social and environmental impact to help customers who have been looking for a deeper meaning in their purchases.

Let’s evaluate the case of Tesla as another instance. Founded in 2004, the company’s commitment to electric vehicles (EVs) has reshaped the automotive industry. With a market capitalization of $650 billion and a cumulative global sale of 4 million EVs, Tesla has outperformed many established automakers.

General Motors, on the other hand, recalled its EV1 electric cars in 2003 and abandoned the EV segment. GM’s market capitalization stands at $37 billion, a fraction of Tesla’s value. Tesla’s innovation-driven approach has propelled its revenue growth, emphasizing the financial prudence of addressing environmental and social concerns.

ESG holds tremendous potential for businesses

ESG opens up the opportunity or companies to contribute positively to the society. In the process, they can open up fresh revenue streams. ESG, sustainability, and climate solutions offer a framework for tapping into this potential. It’s imperative to understand corporate purpose and master ESG principles for businesses to capitalize on the opportunities. Once you identify where the core business purpose meets evolving market needs, you can offer solutions that address the pain points. Accordingly, you can position your brand for long-term success. Collaborating with an established ESG advisory firm like the IMC Group goes a long way in guiding you toward creating value through ESG initiatives. Combining cost-reduction strategies with revenue-enhancing ESG approaches, you can make a positive impact while ensuring long-term financial sustainability.

NEWSLETTER, GLOBAL

The Transformational Power of Role-Based ESG in Modern Business

October 10, 2023

In recent years, Environmental, Social, and Governance (ESG) considerations have taken centre stage in corporate boardrooms. ESG has gone a long way in shaping the way businesses operate and make decisions. However, it’s equally crucial to understand the profound impact of ESG practices on entry level enterprises, from the C-suite to middle management and operational roles.

Let’s explore the concept of role-based ESG and how businesses are transforming by embracing this concept. As a business owner or CEO, it’s imperative to understand the wide range of benefits of role-based ESG.

The Hidden Potential of Employee-Driven ESG Initiatives

It’s not uncommon for employees within an organization to make substantial contributions to ESG goals. This can be as simple as sharing rides, reducing single-use plastic, using public transportation, or cycling to work. However, data capturing these individual efforts often goes unnoticed.

Many businesses can relate themselves to this situation where they are taking meaningful strides towards achieving sustainability and net-zero goals. However, they fail to communicate the impact of these actions effectively throughout the organization.

Sustainability reporting has reached an all-time high in the corporate world. As much as 96% of S&P 500 and Russell 1000 companies currently publish their ESG reports. Despite these strides, the influence of ESG initiatives on the average employee remains largely unexplored. Adopting role-based ESG practices is the key to addressing this gap where data integrity lies at its core.

Cultivating a Data-Centric Culture for Role-Based ESG

Businesses need to foster a data-centric culture throughout their organization to implement role-based ESG effectively. Leadership teams are gradually increasingly recognizing the importance of this shift. However, the key challenge lies in engaging employees at different levels of the organization to embrace this approach.

Now, organizations face a question: How do they inspire a ‘we want to do this’ attitude driven by employees rather than a ‘we should do this’ directive from the top?

In this case, the solution lies in capitalizing on qualitative data to validate the actions of employees. When individuals see that their efforts are recognized and contribute to decision-making processes, chances are high that they will engage wholeheartedly. With this approach, there’s limited risk that employees would perceive ESG efforts as mere lip service, a perception that often leads to disengagement.

Organizations can empower individuals by capturing data using different tasks and sharing the results transparently across the company. This provides adequate proof of concept for their actions. The approach is effective in encouraging a data-centric culture while measuring the results simultaneously. This brings about a real change and fosters a sense of empowerment among employees.

Role-Based ESG as a Catalyst for Employee Satisfaction and Social Responsibility

Employees need not fear the adoption of role-based ESG strategies. Companies should assign ESG-related tasks and responsibilities across various roles to cultivate a culture of sustainability and social responsibility. With this approach, they can succeed in delivering a greater degree of job satisfaction and boost the morale of employees, who realize that their efforts eventually have a broader and positive impact on society.

However, companies must adopt a thoughtful stance while implementing these strategies. For each role, ESG responsibilities should be integrated in a manageable and relevant manner. Therefore, organizations must provide relevant resources to their employees, including training, support, and adequate data. This ensures that employees can contribute to the ESG goals of the organization effectively.

Ensuring Authenticity in Role-Based ESG

Authenticity is paramount to ensure that the role-based ESG approach succeeds in the organizational setup. This shouldn’t be considered as ‘greenwashing’ or simply posturing for public relations purposes. Honesty, transparency, and genuine commitment to real change are the benchmarks of effective role-based ESG implementation. This is where capturing data and adopting a data-centric culture plays a vital role. It enables individuals to feel validated and thus, they oblige the efforts being made by their organization.

Fostering a Community of Best Practices

Capturing workforce contributions is crucial to improve and support ESG best practices continually. This can help in shaping and driving the evolution of ESG standards across the organization. Creating a community to share best practices holds immense potential in strengthening ESG efforts. Therefore, a role-based approach to ESG should span every level of an organization to elicit a transformative impact. Businesses embracing this approach can enhance risk management, enhance their reputation and boost profitability.

Eventually, organizations shouldn’t consider ESG to be a niche concern for their boardrooms. It’s a strategic component in every forward-thinking enterprise.

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