In today’s ever-evolving digital landscape, regulatory frameworks struggle to keep pace with technological innovation. Chief Risk Officers (CROs) face a daunting task: ensuring their organisations remain compliant with new and shifting regulations. This challenge, however, must be met with precision, not panic.
When new technology regulations are introduced, a thorough audit of existing operations and practices is imperative. A report by McKinsey found that regulatory compliance costs businesses an estimated 15-20% of their operating budgets annually. This number is expected to rise as more jurisdictions introduce complex data privacy, cybersecurity, and artificial intelligence (AI) regulations.
For CROs, the path to alignment begins with understanding where current operations fall short of new standards. From GDPR to the EU AI Act, compliance often requires organisations to re-examine not just technology but also processes, governance, and even organisational culture. In fact, Deloitte reports that companies with strong regulatory alignment frameworks see 30% fewer compliance incidents than those without.
Yet, the temptation to treat compliance as a box-ticking exercise should be resisted. The most forward-thinking companies view regulatory alignment as an opportunity to enhance trust with stakeholders, rather than merely a legal obligation. After all, regulatory compliance is not static—it evolves with technological advancements. CROs must ensure their strategies are both agile and sustainable.
Leaders hould proactively audit their technology estate, identifying areas where regulatory requirements are already met and where gaps exist. Early action in aligning with new rules not only mitigates the risk of penalties but positions your organisation as a leader in responsible innovation.
