AML Conversations Beyond Legal Risks in Third-Party Risk Management
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Feb 19, 2025 Mossimo Bronzetti, a seasoned legal expert in AML and third-party risk management, discusses the evolving landscape of third-party risk. He emphasizes the critical importance of reputational risks, especially in the age of social media, while outlining how these risks can significantly impact consumer-focused businesses. The conversation also delves into emerging legal risks tied to new regulations like the EU Corporate Sustainability Reporting Directive, highlighting the need for organizations to adapt their risk assessments to ensure sustainability and ethical standards.
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Reputational Risks vs. Legal Risks
- Reputational risks can be more damaging than legal risks, especially with social media's rapid spread of information.
- The court of public opinion moves much faster than legal proceedings, amplifying reputational damage.
Italian Criminal Trial Duration
- Criminal trials in Italy can take an average of 4.5 years to reach a final ruling.
- Even with acquittal, reputational damage from the initial accusations can linger and significantly impact dealings.
Investor Concern for Reputational Risks
- Public investors are highly concerned about reputational risks impacting their investments, especially given potential boycotts.
- Public opinion heavily influences investor behavior, particularly in the age of social media.