Compliance, Risk and Resilience: meeting requirements or driving growth?
8 minutes | Published April 7, 2025
- Compliance & Resilience

Key takeaways
- Regulatory complexity is rising fast. Meeting even basic standards now requires major effort and resources.
- Strong compliance and IT risk management are key to protecting your business and shaping long-term strategy.
- AI helps streamline compliance and detect risk earlier – when used smartly, it’s part of the solution.
- ESG should remain a strategic priority, not an afterthought. It’s a driver of long-term value and trust.
- Global risks need a global response. Build resilience by connecting compliance, governance, and innovation.
Companies are inundated with a multitude of regulatory requirements, making the challenges of risk management and compliance increasingly complex. Although companies may be tempted to criticize the flood of regulations and the subsequent burden of implementation, they are faced with a fundamental decision: Do they simply comply with regulations and minimum standards? Or do they use regulation to actively shape their future? After all, if implemented well, risk management and compliance undoubtedly offer opportunities to drive innovation and growth.
#1 From silo to strategy
Compliance is ultimately the responsibility of the Board, who must provide leadership and oversight while recognizing that all employees across the organization have crucial roles to play in ensuring adherence to all legal regulations and rules across the company. This task requires both financial and human resources, which is perhaps why some companies are reluctant to prioritize this area. In practice, this often means that only the absolute minimum regulatory requirements are met. However, it is time to reconsider this approach. Current and future regulatory requirements present companies with immense challenges. Complex regulations – from the new money laundering regulations to the Corporate Sustainability Reporting Directive (CSRD) – require considerable changes. Increasingly, even with a minimal approach that only aims to fulfill the basic requirements, significant resources and investments are necessary.
The good news is that an efficient, effective and appropriate compliance management system (CMS) can help the company avoid legal sanctions, financial losses and reputational risks. This, complemented by strong IT risk management frameworks, strategic governance controls, and robust technology infrastructure, creates a comprehensive defense system. At the same time, this integrated approach ensures regulatory adherence while also promoting a corporate culture characterized by integrity and transparency. Strong IT governance controls provide the necessary oversight to track compliance requirements across the organization, while (IT) risk management strategies allow companies to respond proactively to emerging challenges.
Regulatory requirements always have a strategic dimension, so companies should use this as an opportunity to critically reflect on and adapt their overall strategy. A regulatory framework provides valuable points of reference for this, as it makes a thorough analysis of internal structures and organizational processes essential. If compliance and risk management remain isolated functions in separate departments – and are merely seen as a tickbox exercise – it will prevent the necessary transformation from being successfully implemented. A sustainable solution requires organization-wide alignment, removing any silos, and broadly anchoring the relevant competencies throughout the company, ensuring all stakeholders understand their role in managing risks.
The key success factor is the “word from the top”. This refers to the Board’s commitment to compliant behavior. This must not remain mere lip service but must be actively practiced – including consistent clarification and sanctioning of breaches of compliance.
This aspect is closely linked to a corporate strategy geared towards compliance and risk management. Managers at all levels are therefore called upon to deal with the strategic components and foster participation across their teams. The aim is to establish a corporate culture in which risk management and compliance are an integral part of corporate thinking and action. This approach forms the basis of long-term resilience and innovative strength.

Establish a corporate culture in which risk management and compliance are an integral part of corporate thinking and action.
#2 The globalization of risks: complexity across borders
The challenges of globalization for corporate risk management are nothing new. Nevertheless, the past few years have shown, sometimes drastically, how vulnerable companies can be due to interwoven dependencies in an increasingly complex world. This is made even more difficult by extensive and, in some cases, internationally differing legal rules and regulations. The rapid increase in new regulations has made it increasingly difficult for companies to keep up with the constant changes. With the CSRD, DORA, AI Act and GDPR, the European Union alone has created regulations that push companies to the limits. Furthermore, even more complex regulations are on the horizon.
Added to this is technological development, the dynamics of which are becoming increasingly difficult to manage. The CrowdStrike incident last year was a worrying illustration: a faulty update led to global system failures and showed how vulnerable companies are today due to international, almost impenetrable interdependencies. Consequently, the risk landscape is expanding and calls for innovative solutions – including third-party risk management from suppliers or third-party providers. To successfully manage this complexity and actively manage the challenges, companies need a comprehensive global strategy for their compliance and risk management activities. Increasing complexity must be integrated into risk strategies at an early stage and reviewed regularly. Technologies such as AI can provide valuable support.

The rapid increase in new regulations has made it increasingly difficult for companies to keep up with constant changes.
#3 The opportunities of AI: overcoming regulatory challenges and unleashing innovation
Discussions about AI are everywhere, including in the compliance and risk management functions. Technology development is extremely dynamic. The AI Act of the European Union (EU) was a first attempt to regulate the development of technologies and the associated possibilities. Other countries are keeping a close eye on the repercussions of the AI Act, and further legislation will follow. This raises the fundamental question of how to manage the risk and potential of a technology whose effects are still completely unforeseeable.
Attempts to answer this question often lead companies to focus on establishing AI governance in order to meet legal requirements. After all, companies must be prepared to manage the impact of AI as soon as it becomes apparent. However, AI can be more than just the cause of yet another regulatory problem for companies – it can and should be part of the solution. This is because AI offers enormous potential, particularly in the areas of compliance and risk management. The financial sector has a head start here due to existing comprehensive regulation. However, regulatory requirements will continue to increase in the future. For example, anti-money laundering regulation and terrorist financing will become much stricter in the coming years. Amongst other things, companies will be required to monitor transactions more closely, such as know-your-customer initiatives. Some companies have already recognized the opportunities that AI can offer here – other companies, however, are not yet convinced and are leaving potential untapped.

Companies that view AI solely as a regulatory problem will miss its revolutionary compliance benefits.
#4 Neglecting ESG? A dangerous game with long-term risks
In light of economic and political developments and global crises, ESG considerations have recently taken a back seat. However, de-prioritizing these efforts is a serious mistake. While current developments may seem more pressing, environmental, social and governance factors are increasingly becoming fundamental elements that companies must consider in order to be resilient.
Many companies are largely unaware of the impact that climate change and its effects may have on them. Rising temperatures, more frequent natural disasters and the risk of resource scarcity will have a long-term impact on the entire economy. In addition, pressure from investors and consumers is increasing. Not only environmental challenges, but also social inequality and governance failures will fundamentally change entire industries in the coming years and decades.
Companies must therefore prioritize, attempt to quantify and actively manage a clear, strategic approach that helps address regulatory ESG risks and opens up opportunities for new business models and responsible innovation. Companies that invest in ESG initiatives now and firmly integrate environmental, social and ethical governance into their value chains will strengthen their position for the long term – and secure a competitive advantage in times of change. ESG integration is more than just a compliance issue: it is the key to a future-proof and resilient corporate strategy.

De-prioritizing ESG efforts in the face of political developments and global crises is a serious strategic mistake.
Think further – go further
In a world of increasing uncertainty and complex requirements, companies need to decide where they will stand. They can only do what is necessary: but those who take a strategic approach to risk management, regulation and compliance not only strengthen their own resilience, but also set standards in a changing world. A proactive approach to regulation and risk management promotes stability and creates a corporate culture that recognizes opportunities and actively shapes change. Organizations that position themselves strategically and make smart investment decisions secure their long-term competitiveness and shape future markets.