​​Navigating the Horizon: Key Risk and Compliance Trends in 2024

Updated on May 7, 2024 by Ian Terry

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Importance of Risk And Compliance in Today’s Business Landscape

The importance of risk management and compliance processes cannot be understated as they go hand in hand to keep your company and people safe while you navigate the challenges of the market.

Compliance is both an action and a standard. When we talk about compliance as an action, it’s about consciously following government laws, safety standards, and data requirements. Meeting these rules earns trust and shows everyone that the company cares about doing things right—for its employees and customers.

On the flip side, having a strong risk management strategy is also important for your company. Having such a plan allows you to develop policies and procedures to avoid potential threats and minimize their impact if they arise. 

However, you need to understand the nature and extent of the operational risks your company is willing to take and to communicate this effectively to employees at all levels of management. This ensures everyone is on the same page when it comes to navigating potential risks.

Compliance tasks and risks consistently evolve into bigger and more complex entities. As such, it is critical for every organization to track trends and changes.

New Trends in Regulatory Compliance

In 2024, compliance industries face sudden changes and rapid evolution of operations in the entire supply chain. Thanks to the contributions of artificial intelligence and automation, compliance businesses are now forced to develop appropriate regulations to maintain security.

Regulatory risk and compliance always come together, especially in the current climate of cybersecurity. This is why, within the governance, risk, and compliance (GRC) environment, it’s imperative to monitor emerging trends diligently. 

Some of the regulatory compliance trends you need to look out for are:

Artificial Intelligence and Automation

AI and machine learning (ML) are making waves in handling compliance tasks, with several key trends in compliance automation emerging:

• Data Privacy: There’s a growing emphasis on ensuring data privacy compliance, especially with the increasing focus on regulations like GDPR and CCPA.
• Real-time Monitoring: Real-time continuous monitoring is becoming increasingly important in identifying and addressing compliance issues as they arise swiftly.
• Integration into Daily Operations: Compliance automation is integrated into daily business operations. It streamlines processes and ensures ongoing adherence to regulations.

Not just that, AI’s current capabilities hold promise in addressing other critical pain points in compliance:

• Responsible AI can compare and analyze policies and guidelines, providing recommendations on areas for improvement.
• AI can help identify risks and even predict emerging risks through predictive analytics.
• It can detect overlaps and contradictions within large sets of policy documents, ensuring consistency and coherence and helping mitigate risk more effectively.
• AI aids in analyzing and identifying discrepancies between two sets of policies during mergers and acquisitions, facilitating smoother integration processes and third-party risk management.

Data Protection Enhancements

Data protection is taking center stage due to growing concerns about data privacy and the alarming frequency of data breaches. Security practices are expected to become under more scrutiny to help mitigate risks amid the growing use of technology and changes in compliance practices.

Here are some key developments to watch out for in compliance procedures:

1. Data Protection and Digital Information Bill: This bill is set to revamp and simplify the UK’s data protection compliance frameworks. It’s slated to receive Royal Assent in 2024, ushering in significant changes.
2. Privacy-Enhancing Technologies: Innovations like homomorphic encryption, secure multi-party computation (SMPC), differential privacy, and other software development are gaining traction. These technologies are designed to bolster privacy measures and safeguard digital information.
3. Implementing Regulations: In 2024, Jordan and Oman are gearing up to introduce implementing regulations, while the UAE and Egypt are expected to witness advancements in implementing regulations and Data Protection Authority (DPA) activity. 
4. Cyber Legislation and Regulations: The year 2024 is poised to witness a surge in the issuance and implementation of national cyber frameworks and security regulations. Governments worldwide are ramping up efforts to combat cyber threats and enhance digital resilience.

Forward-Looking Global AI Regulation

When it comes to AI, the future is here, but so are the concerns and cybersecurity threats. Did you know that over half of consumers are worried about how AI might impact their privacy?

It’s a big deal, and for good reason. We need to ensure that AI is used ethically without causing chaos in the industry through regulatory scrutiny.

Here’s a glimpse of what’s been happening globally:

• EU’s Artificial Intelligence Act: The EU is leading the charge with its draft AI Act. This is a compliance program focusing on security, transparency, and accountability to set a global standard.
• Japan’s Social Principles of Human-Centric AI: Japan takes a people-first approach, emphasizing flexibility and considering societal impact in its AI strategy.
• ISO’s Global Blueprint: The International Organization for Standardization (ISO) is working on standardizing AI systems worldwide with ISO/IEC 23053:2022/AWI Amd 1, ensuring consistency and reliability.
• U.S. AI Executive Order by Biden Administration: In the U.S., the Biden Administration’s AI Executive Order shares strategies prioritizing safety, privacy, equity, and innovation.
• IAPP’s Governance Center: Leading the way in training professionals to navigate the intricate world of AI regulation and policy management, the International Association of Privacy Professionals (IAPP) Governance Center is at the forefront of shaping AI governance.

These initiatives and new rules set the foundation for a global commitment to responsibly shaping AI’s future so that it benefits society while safeguarding privacy and security. Regulatory changes are being made as AI becomes more incorporated into everyday operations.

Integrated Compliance Management

Integrated Compliance Management (ICM) is a sophisticated framework of processes, tools, and principles designed to assist companies in documenting and upholding compliance with regulations across various levels. 

Here’s why ICM is currently on trend:

1. It gathers and organizes all your important info neatly, so you always know where to find what you need.
2. With ICM, you can approach compliance like a pro. The process is methodical and smart, using data and analysis to stay on top of things.
3. ICM takes care of the grunt work by automating routine compliance tasks, freeing you up to focus on the core tasks.
4. ICM keeps an eye on things in real time and provides you reports whenever needed, showing that you’re on the straight and narrow.

Corporate Sustainability Due Diligence Directive

The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) is gearing up to kick in around May 2024, just a few weeks after it appears in the Official Journal of the European Union. Here’s the scoop on how it’s going down:

• In 2027, companies with over 5,000 employees and a whopping 1.5 billion euros in turnover need to get on board.
• The following year, 2028, companies with over 3,000 employees and 900 million euros in turnover will have to get on board.
• And from 2029 onward, even smaller companies with over 1,000 employees and 450 million euros in turnover will need to hop on.

AWA Can Assist You to Keep Up With Compliance Trends

With the complexity of IT, software, and risk compliance, it’s crucial to approach it strategically. Not every aspect can be addressed simultaneously. Crafting a compliance plan requires careful prioritization and alignment with your organization’s specific needs and industry standards.

Enter AWA, the expert in independent and unbiased risk assessment and compliance services. AWA’s proficiency spans various industries, helping countless companies to successfully enhance their security measures and achieve compliance objectives in weeks and not months.

Curious to learn more? Reach out to AWA to investigate how our services can optimize your compliance and risk strategy.

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About The Author

Ian Terry

Ian has 7 years in the Information Technology field with 4 years in Cybersecurity, Compliance, and IT auditing. He has performed numerous risk assessments and audits related to NIST, HIPAA, HITRUST, FISMA, PCI, and CMSR. He is also an expert in third-party risk management having built a SaaS security platform for streamlining third-party risk assessments. Ian's cybersecurity writings have been published in Hackernoon, Security Boulevard and CISO Mag. He holds a B.S. in Cybersecurity from a national center of academic excellence in cybersecurity as recognized by the NSA and DHS and has CSM, HCISPP, and SSCP certifications.