Governance Risk Compliance

Unfortunately, many organizations treat audits like a school exam they need to “pass”, not a tool to improve the security posture of the organization. The goal isn’t necessarily to fix the problems [ or keep ignoring until a real cyber-attack hits] but to tick boxes and get that stamp of “compliance” In some cases, auditors are handed a narrowly defined scope –while conveniently forgetting to mention messy departments, high-risk projects, personal data processing areas, or sketchy vendor deals. In my experience as well, often, unless I deep dive into questions, many organizations downplay risks and don’t acknowledge the personal data processing risks. Auditors can’t check everything, so some companies serve up carefully curated samples. Example – for a proof endpoint security, share a screenshot of EDR on one of the machines. This could be short-term win, long-term pain: These ignored risks can explode later as lawsuits, fines, or reputational disasters. When audits are rushed or superficial, trust in the system crumbles. Genuine audits demand transparency, empower whistleblowers, and actually fix what’s broken. Image courtesy: AI #audit #compliance #riskmanagement #soc2 #iso27001 #nist #grc #hipaa #itgc #itac

"I only tell my boss the risks when I’m 100% sure, otherwise I’d rather keep quiet” - a manager recently told me during a workshop: Other managers started nodding - highly relatable. This is what psychology calls the MUM effect - Minimizing Unpleasant Messages coined by Rosen & Tesser (1970). It’s the deeply human tendency to avoid delivering bad news or to soften it until the truth is barely visible. - We do it to protect ourselves from blame. - We do it to protect others from discomfort. - And in the moment, silence feels safer than honesty. But here’s the cost: - Leaders make decisions without critical information. - Teams repeat the same mistakes. - Opportunities get lost. But here’s the paradox: what feels safe for the individual is unsafe for the team. Neuroscience explains why: when we prepare to share uncomfortable truths, the amygdala - the brain’s threat detection system - activates. It interprets honesty as danger: the risk of rejection, conflict, or loss of status. So silence feels like self-protection. How can leaders mitigate this effect? 👉 1. Redefine what “good” means in your team Say explicitly: “Being good here means raising risks early, even if you’re not 100% sure.” 👉 2. Reward the messenger, not just the message Thank people for speaking up, regardless of whether the risk turns out real. This rewires the brain to see honesty as safe. 👉 3. Ask better questions Replace “Any questions?” with “What’s the toughest risk we might be overlooking?” or “What would you challenge if you were in my seat?” ✨ This is exactly what I work on with leadership teams in my Safe Challenger program and workshops, helping leaders unlearn compliance-based leadership and build cultures of courage. Because the biggest risk in teams isn’t mistakes. It’s silence. P.S.: What’s do you think is harder: speaking up with uncomfortable truths or hearing them?

Audit, Risk & Compliance (ARC): The Three Pillars of Strong Governance "Let me explain why Audit, Risk, and Compliance aren’t just checkboxes—they’re your governance backbone." I’ve had this conversation many times with peers, clients, and boards. And here’s what I often say when someone asks, “How do you build strong governance?” You start with ARC: - Audit - Risk Management - Compliance Each has its role, but when aligned, they become a strategic force. Let me walk you through it from experience: 🔍 Audit is your independent lens. Think of Audit as the team that tells you what’s happening. Their job is to verify that controls are working not just existing on paper. ▶ Example: I once saw an internal audit uncover a $500K billing discrepancy no one had noticed. That wasn’t just cost savings it was a control failure caught before it became reputational damage. The best audit teams today use data analytics and real-time assurance tools to stay ahead. Traditional static audits no longer suffice. ⚠️ Risk is your radar. Risk Management isn’t about stopping risk, it’s about knowing which risks matter, and how much risk you can take to grow. I’ve seen risk teams run scenario analyses ahead of market expansion that flagged FX volatility. With a solid hedging plan, they avoided a 7% EBITDA hit. That’s what proactive risk management looks like. And right now? The strongest risk programs I’ve seen are integrating AI, ESG risk, and third-party oversight into their frameworks. ✅ Compliance is your moral and legal compass. Compliance isn’t just about avoiding fines. It’s about building trust internally and externally. A solid compliance program is the reason one company I worked with navigated new data privacy regulations across multiple countries without missing a beat or getting penalized. What’s changing? Compliance is becoming more automated, more behavior-driven, and more global. And that means compliance officers need better tech and a seat at the strategy table. Now here’s the key: ARC only works when it's integrated. When Audit, Risk, and Compliance operate in silos, things fall through the cracks. But when they collaborate sharing insights, aligning priorities, and using common platforms governance becomes a value driver. A recent PwC survey backs this up: - 73% of execs say ARC alignment improves decision-making - 65% plan to invest in integrated GRC platforms - Over half say Internal Audit is now a transformation partner If you’re leading or supporting ARC functions, my advice is simple: Don’t build walls, build bridges. The future of governance isn’t in functions. It’s in how those functions work together. Let me know how ARC works in your organization today. Do the functions collaborate, or still operate in silos? #Governance #InternalAudit #RiskManagement #Compliance #GRC #BoardEffectiveness #OperationalResilience #Leadership #3prm #tprm #GovernanceExcellence #RiskStrategy #ComplianceCulture

🚨 New OMB Report on Post-Quantum Cryptography (PQC)🚨 The Office of Management and Budget (OMB) has released a critical report detailing the strategy for migrating federal information systems to Post-Quantum Cryptography. This report is in response to the growing threat posed by the potential future capabilities of quantum computers to break existing cryptographic systems. **Key Points from the Report:** 🔑 **Start Migration Early**: The report emphasizes the need to begin migration to PQC before quantum computers capable of breaking current encryption become operational. This proactive approach is essential to mitigate risks associated with "record-now-decrypt-later" attacks. 🔑 **Focus on High-Impact Systems**: Priority should be given to high-impact systems and high-value assets. Ensuring these critical components are secure is paramount. 🔑 **Identify Early**: It's crucial to identify systems that cannot support PQC early in the process. This allows for timely planning and avoids migration delays. 🔑 **Cost Estimates**: The estimated cost for this transition is approximately $7.1 billion over the period from 2025 to 2035. This significant investment underscores the scale and importance of the task. 🔑 **Cryptographic Module Validation Program (CMVP)**: To ensure the proper implementation of PQC, the CMVP will play a vital role. This program will validate that the new cryptographic modules meet the necessary standards. The full report outlines a comprehensive strategy and underscores the federal government’s commitment to maintaining robust cybersecurity in the quantum computing era. This is a critical step in safeguarding our digital infrastructure against future threats. #Cybersecurity #PQC #QuantumComputing #FederalGovernment #Cryptography #DigitalSecurity #OMB #NIST

Sustainability Reporting and Compliance Calendar for 2025 🌎 The regulatory landscape for sustainability is rapidly evolving, with an increasing number of global regulations pushing businesses to enhance transparency and accountability. From emission reporting to supply chain due diligence, compliance demands are growing more intricate, requiring proactive engagement from companies across sectors. In 2025, the number of regulatory deadlines continues to climb, reflecting the global urgency to address environmental challenges. Key regulations like the Corporate Sustainability Reporting Directive (CSRD) in the EU and the Carbon Border Adjustment Mechanism (CBAM) highlight the shift toward stricter carbon accounting and transparent reporting. This trend signals an era where sustainability is no longer optional but a critical business requirement. As regulations grow in number and complexity, so do the expectations. Companies must not only meet existing standards but also prepare for future compliance needs. Requirements such as the EU Deforestation Regulation, effective December 30, 2025, demonstrate the increasing emphasis on supply chain transparency and sustainable practices. Businesses that fail to adapt risk operational disruptions and reputational setbacks. Monitoring regulatory developments is no longer just a legal obligation but a strategic priority. Organizations must actively track changes in national and international frameworks to ensure readiness for compliance. Regular assessments and alignment of internal processes with emerging standards will be essential to avoid penalties and maintain competitive standing. Preparedness is key in this dynamic environment. By integrating compliance into broader sustainability strategies, businesses can not only meet regulatory demands but also unlock opportunities for innovation and leadership in sustainability. The expanding regulatory landscape offers a chance to drive meaningful impact and strengthen resilience in a world increasingly shaped by sustainability priorities. #sustainability #sustainable #business #esg #climatechange #climateaction

Most medical device companies get risk management backwards. They treat it like a documentation exercise instead of what it really is: A shield protecting patients and innovation. I've reviewed countless risk management files over my career. The successful ones all share a secret: They use the right tool for the right job. Think of it like a master craftsman's toolbox. Each tool has its purpose: ISO 14971 is your foundation ↳ It's not just a standard—it's your roadmap ↳ But too many teams stop at "identify and mitigate" ↳ The real power lies in continuous monitoring and feedback FMEA speaks the language of prevention ↳ Don't just list what could go wrong ↳ Ask "then what?" until you uncover the real risks ↳ Those Risk Priority Numbers? They're conversation starters, not stop signs Fault Trees reveal hidden connections ↳ Sometimes the shortest path to failure isn't the most likely ↳ One small fault can cascade into system-wide issues ↳ Map these paths before they become problems The Fishbone never lies ↳ When something goes wrong, it's rarely just one thing ↳ Materials, methods, machinery, and people all play their part ↳ The best solutions often hide in unexpected places Bowtie Analysis brings clarity to chaos ↳ Shows you where your controls really are—and aren't ↳ Helps explain complex risks to stakeholders ↳ Perfect for those "how did we miss that?" moments HAZOP catches what others miss ↳ Because sometimes "working as intended" is the problem ↳ Small deviations can have massive consequences ↳ Systematic analysis beats tribal knowledge every time After 15 years+ in this field, I've learned: Great risk management isn't about preventing every possible problem. It's about building a system that's smarter than any single failure. P.S. What unexpected insight has your risk management system revealed lately? ⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡⬡ MedTech regulatory challenges can be complex, but smart strategies, cutting-edge tools, and expert insights can make all the difference. I'm Tibor, passionate about leveraging AI to transform how regulatory processes are automated and managed. Let's connect and collaborate to streamline regulatory work for everyone! #automation #regulatoryaffairs #medicaldevices

On August 1, 2024, the European Union's AI Act came into force, bringing in new regulations that will impact how AI technologies are developed and used within the E.U., with far-reaching implications for U.S. businesses. The AI Act represents a significant shift in how artificial intelligence is regulated within the European Union, setting standards to ensure that AI systems are ethical, transparent, and aligned with fundamental rights. This new regulatory landscape demands careful attention for U.S. companies that operate in the E.U. or work with E.U. partners. Compliance is not just about avoiding penalties; it's an opportunity to strengthen your business by building trust and demonstrating a commitment to ethical AI practices. This guide provides a detailed look at the key steps to navigate the AI Act and how your business can turn compliance into a competitive advantage. 🔍 Comprehensive AI Audit: Begin with thoroughly auditing your AI systems to identify those under the AI Act’s jurisdiction. This involves documenting how each AI application functions and its data flow and ensuring you understand the regulatory requirements that apply. 🛡️ Understanding Risk Levels: The AI Act categorizes AI systems into four risk levels: minimal, limited, high, and unacceptable. Your business needs to accurately classify each AI application to determine the necessary compliance measures, particularly those deemed high-risk, requiring more stringent controls. 📋 Implementing Robust Compliance Measures: For high-risk AI applications, detailed compliance protocols are crucial. These include regular testing for fairness and accuracy, ensuring transparency in AI-driven decisions, and providing clear information to users about how their data is used. 👥 Establishing a Dedicated Compliance Team: Create a specialized team to manage AI compliance efforts. This team should regularly review AI systems, update protocols in line with evolving regulations, and ensure that all staff are trained on the AI Act's requirements. 🌍 Leveraging Compliance as a Competitive Advantage: Compliance with the AI Act can enhance your business's reputation by building trust with customers and partners. By prioritizing transparency, security, and ethical AI practices, your company can stand out as a leader in responsible AI use, fostering stronger relationships and driving long-term success. #AI #AIACT #Compliance #EthicalAI #EURegulations #AIRegulation #TechCompliance #ArtificialIntelligence #BusinessStrategy #Innovation 

𝟗𝟎,𝟎𝟎𝟎 𝐬𝐚𝐥𝐚𝐫𝐢𝐞𝐝 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐞𝐬. 𝐎𝐧𝐞 𝐦𝐢𝐬𝐭𝐚𝐤𝐞. 𝐀 𝐥𝐢𝐟𝐞𝐭𝐢𝐦𝐞 𝐨𝐟 𝐫𝐞𝐠𝐫𝐞𝐭. When the Income Tax Department cracked down recently, what they uncovered wasn’t just fraud. It was a mirror to how small shortcuts can spiral into life-changing consequences. Here’s what happened (and what every professional should learn): 𝐂𝐚𝐬𝐞 𝟏 – 𝐓𝐡𝐞 “𝐈𝐧𝐯𝐢𝐬𝐢𝐛𝐥𝐞” 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬 Employees claimed deductions under 𝟖𝟎𝐂 – 𝐍𝐏𝐒, 𝐏𝐏𝐅, 𝐄𝐋𝐒𝐒, 𝐋𝐈𝐂 without ever investing a rupee. On paper, it looked perfect. Until HR’s 𝐅𝐨𝐫𝐦 𝟏𝟔 didn’t match their claims. The system caught them. 𝐂𝐚𝐬𝐞 𝟐 – 𝐓𝐡𝐞 𝐏𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐃𝐨𝐧𝐚𝐭𝐢𝐨𝐧 𝐓𝐫𝐚𝐩 Hundreds of IT professionals in Hyderabad claimed 𝟏𝟎𝟎% 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝐮𝐧𝐝𝐞𝐫 𝟖𝟎𝐆𝐆𝐂. How did they get caught? Simple—political party donor lists are public. Their names weren’t on them. 𝐂𝐚𝐬𝐞 𝟑 – 𝐓𝐡𝐞 𝐅𝐚𝐤𝐞 𝐅𝐨𝐫𝐞𝐢𝐠𝐧𝐞𝐫 𝐋𝐨𝐨𝐩𝐡𝐨𝐥𝐞 In Nagpur, several professionals claimed deductions reserved for foreign nationals. Cross-verified with immigration databases—game over. 👉 Penalty? Either 𝟑𝐗 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐝𝐮𝐞 or up to𝟕 𝐲𝐞𝐚𝐫𝐬 𝐢𝐧 𝐣𝐚𝐢𝐥. Now here’s the deeper truth: Most of these weren’t masterminds of fraud. They were everyday employees who thought “everyone’s doing it” or trusted the wrong advisor promising quick refunds. As someone who’s worked in HR for 10+ years, I’ve seen how people underestimate compliance until it’s too late. Your Form 16 isn’t just a piece of paper—it’s your financial reputation. 𝐌𝐲 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐞𝐯𝐞𝐫𝐲 𝐩𝐫𝐨𝐟𝐞𝐬𝐬𝐢𝐨𝐧𝐚𝐥: ✔️ Report all deductions to HR upfront. ✔️ Keep every proof handy—investments, insurance, donations. ✔️ Never chase refunds through shady agents. ✔️ And most importantly—don’t assume “small lies” won’t get caught. Because if there’s one thing this case proves, it’s this: In the age of data, nothing stays hidden. #HR #CorporateWorld #CaseStudy #Leadership

🚀 The fastest things on Earth: ❌ A cheetah, ❌ A plane, ❌ The speed of light… ✔ People becoming “specialists” in ESG. This meme hits home because it reflects a growing trend in the sustainability space. ESG has become a compliance race, with many rushing to master reporting frameworks but few stopping to ask the critical question: How does sustainability create real value for the business? With the EU Omnibus Regulation creating uncertainty around CSRD applicability, we’re seeing companies hit the pause button, delaying efforts until they know they’re in scope. This raises a red flag: if sustainability was about value creation, would it be put on hold just because reporting requirements are unclear? Here’s the opportunity: while ESG reporting is essential, it’s only one piece of the puzzle. Companies are diverting significant resources to ESG reporting, hiring entire teams to ensure compliance, while the real sustainability agenda, the one that drives ROI and measurable impact, risks being sidelined. But there’s another concerning trend: the rise of leaders in sustainability roles who lack deep expertise in the field. While fresh perspectives can be valuable, sustainability is complex and requires a nuanced understanding of environmental science, social impact, and governance frameworks. Appointing leaders without this background risks prioritizing short-term compliance over long-term transformation. We need to go beyond reporting and work with sustainability experts embedded in operations, procurement, product development, and other core business functions to move the needle. These teams drive innovation, reduce costs, and create products and services that resonate with increasingly conscious consumers. By integrating sustainability into the fabric of the business, companies can unlock real value, both for their bottom line and the planet. 📢 Sustainability isn’t just about reporting; it’s about transformation. Regulations matter, but they should be an accelerator, not the main driver. Companies that treat ESG as a strategic enabler rather than a box-ticking exercise will be the ones that thrive. Let’s build sustainability programs that drive impact AND business value beyond compliance. What’s your take? Are you seeing the same trend in your industry? #ESG #Sustainability #CSRD #ValueCreation #BeyondReporting #Leadership #ImpactInvesting

Is KYC risk assessment becoming more complex by the day? 🤔 With stricter global regulations and increasingly sophisticated financial crime tactics, it's a challenge we can't afford to overlook. I recently found a guide from iDenfy that offers practical insights and actionable strategies for compliance professionals. Even better, it's completely free, not even a gated content page, and you can directly get it from my post! It explores some of the biggest hurdles in our field, like: 📌 Managing regulatory requirements across multiple jurisdictions 📌Tackling high onboarding volumes without sacrificing accuracy 📌 Minimizing false positives and false negatives in risk assessments 🪡 What caught my attention is how it emphasizes modern, tailored solutions. For example, you can: ➡️ Adjust risk levels based on specific industries (think gambling, fintech, or healthcare) ➡️ Assign custom risk weights for better compliance alignment ➡️ Use no-code tools to create rules that meet your unique needs with ease 🛡️ Another highlight for me was its focus on countering emerging fraud risks, like synthetic identities, deepfakes, and hidden ownership structures. It explains how technologies like AI and biometric verification can help us stay ahead of these threats. 🌐 Beyond the tools and technologies, the guide stands out for its practical, risk-based approach to global compliance. Whether you're improving cross-border operations or automating workflows, the strategies feel grounded and relevant. If you’re looking for valuable insights to optimize your compliance processes, I think you’ll find this resource very useful. Sometimes, small changes in how we assess and manage risk can lead to big results! 💪 Are you passionate about an AML-related topic? 🤔 Would you like to write about it and reach over 23k compliance professionals? 🔥 If so, just send me a message to work out the details! 🙂 #compliance #financialcrime #moneylaundering #aml Viktor Domantas Darius Robert