What is your security posture on regulatory readiness in technology?
Technological innovation has long outpaced regulation, but the gap is now closing. Companies in sectors like financial services and life sciences now face a wave of new rules covering data privacy, cybersecurity, and AI.
Executive leaders increasingly recognize regulatory compliance as a top-tier concern. CFOs point to cybersecurity and regulatory compliance as key business risks.
Still, many organizations remain unprepared. A recent study reveals that 63% of CROs and CFOs prioritize regulatory risks. However, only 29% feel those risks have been adequately addressed. Regulatory readiness in technology—the ability to anticipate and comply with new laws—has become a must-have competency for IT and business leaders.
The Rising Tide of Tech Regulation
Regulators worldwide are tightening oversight. Data privacy laws have multiplied—from Europe’s GDPR to a complex set of U.S. state laws. These rules demand strict handling of customer data. Enforcement is active. GDPR fines now exceed $4.5 billion, including a record $1.4 billion penalty in 2023.
Cybersecurity regulations are also increasing. The U.S. SEC requires public companies to disclose major cyber incidents within four business days. Firms must also provide regular updates on their cybersecurity risk programs.
Other industries face added layers. Financial services deal with NY DFS and FFIEC rules. Healthcare and life sciences must comply with HIPAA and FDA guidelines.
AI regulation is next. The European Union’s AI Act, expected in 2025, introduces requirements for transparency, oversight, and risk control. U.S. and Asian regulators are preparing similar frameworks. According to recent research, 72% of CIOs are concerned about managing AI regulations. The message is clear: regulators expect diligence and accountability in every digital initiative.
Building a Proactive Compliance Posture
Companies must move beyond checkbox compliance. To achieve regulatory readiness in technology, shift to a proactive posture using these steps.
Regulatory Readiness in Technology Allows You To Stay Ahead of Changes
Designate a team or officer (e.g., a Chief Compliance Officer or compliance committee) to continuously monitor emerging laws and standards that could impact the business. This team needs to track current regulations and upcoming changes. This includes new AI transparency rules or updated privacy laws in key markets, and regularly briefing the C-suite.
Many companies engage external advisors or industry associations to get early warnings on regulatory shifts. The goal is to anticipate rather than react; by the time a regulation is in effect, compliant processes should already be in place.
Embed Compliance into Strategy and Design
Bake compliance requirements into the earliest stages of technology strategy and project design. Adopting principles like “privacy by design” (ensuring that new systems enforce privacy safeguards by default) and “secure by design” in development processes will save time later. For example, when embarking on an AI project, consider ethical guidelines and potential regulatory criteria (transparency, explainability, data usage consent) as part of the project scope. By aligning technology initiatives with compliance from the start, the company avoids costly retrofits or project delays down the line.
Implement Robust Policies and Controls
Maintain up-to-date internal policies that meet or exceed current regulatory requirements. This includes data handling and retention policies, access controls, encryption standards, incident response plans, and AI usage guidelines. Regularly audit these controls to ensure they are followed in practice.
For instance, conduct periodic data privacy audits to verify that personal data is only used for permitted purposes and that proper consent or legal basis exists for all processing. Test your incident response plan against mandated timelines – could your team detect, assess, and report a breach within 72 hours as GDPR requires, or within 4 days as SEC rules require? Regular drills and tabletop exercises can reveal gaps before regulators or third-party assessors do.
Educate and Empower Employees
Front-line employees are often the ones whose actions determine compliance, be it a salesperson collecting customer info or a developer handling sensitive data. Invest in training programs so that staff understand the “why” and “how” of key regulations. Training should be continuous and role-specific: finance and IT teams might need updates on new financial data protection rules, while data scientists might need guidance on avoiding bias in AI models. Create a culture where compliance is seen as part of everyone’s job rather than solely the legal department’s concern. Encourage employees to speak up if they spot potential compliance issues or have ideas to improve processes.
Leverage Frameworks and Certifications
Use established frameworks as a baseline to build trust with stakeholders. For cybersecurity, frameworks like ISO 27001 or NIST assure a strong security posture to regulators and partners. For privacy, adopting standards like ISO 27701 or implementing controls from the NIST Privacy Framework can demonstrate a commitment to best practices. Seeking relevant certifications or third-party attestations (e.g. SOC 2 reports, HITRUST certification for healthcare data) not only guides internal improvements but also serves as evidence of compliance for customers and regulators. In many industries, demonstrating your processes align with industry-standard controls will streamline audits and due diligence checks.
Turning Compliance into Competitive Advantage – Winning With Regulatory Readiness in Technology
Proactive compliance drives business value. Companies with strong regulatory readiness in technology posture avoid fines, reduce project delays, and move faster.
A strong compliance reputation builds trust externally. In the financial services industry, enterprise clients and regulators demand rigorous risk management. A fintech firm that can demonstrate top-tier data security and transparent AI practices will find it easier to secure bank partnerships or customer contracts.
Being fully compliant with patient data and clinical safety regulations in life sciences means new digital health products can gain approval and user acceptance more readily. Consumers are increasingly savvy about privacy and ethical AI outside of strictly regulated industries. They are more willing to do business with companies that show they handle data responsibly and securely.
Regulatory readiness in technology is becoming a hallmark of good corporate governance, which investors and boards are starting to demand. Leaders in the CIO/CISO suite who can confidently report that their firm meets or exceeds current regulations – and is prepared for what’s next – position the company as resilient and trustworthy. That readiness differentiates true industry leaders in a time of rapid regulatory evolution. By embracing compliance as a core strategy rather than an afterthought, organizations avoid the pitfalls of the new tech governance era and can accelerate innovation under a shield of trust and accountability.
Is your organization ready for what’s next in tech regulation?
Let Coretelligent help you assess, strengthen, and future-proof your compliance posture.