The introduction of new technology regulations often brings with it stricter guidelines around accountability. As algorithms and data increasingly drive business decisions, regulatory bodies want to know: who holds the keys to this technology, and who is accountable when things go wrong?
Research from PwC shows that only 40% of organisations have a clear framework in place for assigning responsibility over data governance and algorithmic decision-making. In the face of tighter regulations, such ambiguity poses significant risk. Regulators now expect a clear chain of accountability, from the boardroom to the product teams, particularly in sectors such as financial services and healthcare.
Accountability extends beyond assigning names on an org chart. It includes building transparency into how algorithms make decisions, how data is stored and processed, and ensuring that all key stakeholders—employees, customers, and regulators—are informed. This need for clarity is critical, especially when non-compliance fines can reach 4% of global revenue, as seen with GDPR violations.
For CROs, the task is two-fold: first, map responsibility across the organisation, ensuring that all compliance obligations are met; and second, foster a culture where regulatory accountability is embedded into daily operations. A study by Harvard Business Review shows that organisations with a well-defined accountability framework see a 21% reduction in compliance-related incidents.
Leaders should formalise an accountability matrix, ensuring that every function tied to regulatory compliance—from data governance to AI oversight is assigned to a responsible individual or team. Building a transparent accountability framework mitigates regulatory risk and strengthens trust with stakeholders.
