Compliance and risk management are growing areas of interest among many organisations today, in light of the recent uptick in legislation related to supply chain transparency and third party accountability such as the United Kingdom Modern Slavery Act, Conflicts Minerals Act and the California Transparency in Supply Chains Act, along with other high profile scandals such as the Panama Papers and Unaoil. The demand for individuals and companies who are well-versed in various state, federal and international regulations and research regarding third party risk management is increasing. Existing compliance consulting firms are starting to gain prominence with large, multinational companies that need to know more about their third parties, the risks they present and how to mitigate that risk.
Law firms, in particular, have seen a growth in compliance-related issues that they need to undertake for certain clients. Some law firms may already be qualified or have existing third-party relationships with outside consulting companies specializing in compliance to carry out the particular projects on an ad hoc basis. Many law firms can see the value in working and partnering with compliance-specific consulting firms such as The Red Flag Group to conduct due diligence, background checks, risk assessments, improve compliance operations and other tasks related to risk management and compliance.