Compliance Insight: Regulatory Intensity & Discord
Unique KPMG & Client Perspectives
How are Compliance professionals driving an effective compliance program during a time of increased regulatory intensity?
KPMG clients share many key insights, including:
Regulatory Changes on the Radar
- Data governance, including e-communication/devices, information barriers
- AI/GenAI, including inventorying, monitoring, governance. Evolving risks, including intellectual property, accuracy, third parties/service providers
- Global coverage, including data flows, Compliance coverage, jurisdictional regulatory differences (e.g., China, EU)
Managing Regulatory Discord
- Expanded policies, guidance, monitoring and screening, including related to chat, social media, digital devices
- Maturing risk governance frameworks (e.g., AI control board, data security)
KPMG Perspective
Regulatory intensity and complexity are here to stay—regardless of industry—so companies must anticipate the risks and strengthen the cards they hold. Expect a return to heightened risk and compliance standards, a focus on national and critical security protections, and an increase in regulatory actions (cross-border, financial crime, data sharing and privacy).
Regulatory Intensity
Given continued economic fluctuations, election-year discord and legal actions, high regulatory intensity particularly in the areas of risk management/governance, financial risk, and data.
Risk Standards
Heightened voluntary self-disclosure and compliance program expectations, a focus on agility and use of data to mitigate and monitor compliance risks, and robust (and demonstrable) compliance risk accountability and governance.
Compliance Sustainability
Demonstrating "sustainability" in Compliance functions will transcend across regulatory areas and require embedding it across pillars and into daily business operations and corporate compensation structures amidst budget pressures/reductions.
Cross-Border Enforcement
Continued regulatory and enforcement scrutiny for cross-border business especially involving high risk jurisdictions, including anti-bribery and corruption, sanctions, and export controls.
National Security
New focus on business and transactions with high-risk jurisdictions impacting US national security, especially those involving critical technological assets and the intersection of several federal offenses.
‘Threat Actors’
Expanded expectations in the detection, mitigation, tracking and remediation of fraud, financial crime, and cyber/physical security risks, including organized, large scale product theft and protection of employees and customers.
Trust & Fairness
Focus on building and enhancing access, fair treatment and trust with consumers, employees, and other stakeholders. Regulatory attention on “say what you do, do what you say”.
Responsible Systems
Increasing (and evolving) use of technology to drive compliance program execution, “predictive analytics”, and other “innovative new technologies”, including AI, with risk management critical to innovating while maintaining trust.
Security & Privacy
In tandem with “all things data”, broad security, data management and privacy regulatory concerns will include but expand beyond cybersecurity and IT risk, to all facets of regulatory coverage.
Data
Data is seen as a potential "soft underbelly" to the execution of effective compliance risk monitoring programs, particularly quality data governance, data risk and controls, and data lifecycle management.
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