risk management

From Innovation to Regulation: How Internal Audit Must Respond to the EU AI Act

The EU AI Act, a global standard for AI regulation, requires organizations worldwide to address AI risks through governance, controls, and accountability. Internal auditors must adapt to this shift, auditing AI governance, risk classification, data quality, human oversight, and third-party AI risk to ensure compliance.

https://www.wolterskluwer.com/en/expert-insights/innovation-regulation-how-internal-audit-must-respond-eu-ai-act

Living Risk Registers Help Security Leaders Prioritize Real Risk Over Compliance Theater

Living risk registers prioritize real cyber resilience by integrating compliance into risk management. Ann Dunkin advocates for a quarterly review process quantifying non-compliance consequences, aligning security with daily decision-making. Compliance traps often arise from structural flaws in funding and mandate authority. Effective cybersecurity requires collaboration between CIOs and CISOs, focusing on a team's culture and flexible incident response. As AI advancements create more complex risks, organizations must adapt strategies to safeguard against evolving threats.

https://www.thesecuritydigest.com/news/living-risk-register-compliance-ann-dunkin-georgia-tech

The Shadow AI Workforce: When Employees Go Rogue With Tech

Employees are using AI tools without official sanction, creating a “shadow AI workforce” that poses risks in data security and compliance. This trend emerged alongside the rise of generative AI tools, reflecting employees' desire for efficiency. HR must address this issue proactively by establishing clear AI policies, promoting safe usage, and fostering open communication about AI use. Ignoring or punishing this behavior can stifle innovation; instead, organizations should leverage it for strategic advantage by providing proper guidelines and training.

https://www.hrkatha.com/features/hr-pops-features/the-shadow-ai-workforce-when-employees-go-rogue-with-technology/

TPRM Governance: How Companies Strategically Manage Third-party Risks

KPMG discusses third-party risk management (TPRM) governance as essential for navigating challenges like geopolitical tensions, cyber threats, and regulatory pressures. Effective TPRM evolves from mere compliance into a strategic tool for resilience and business value. Companies struggle with outdated structures and fragmented approaches, necessitating clear governance to define roles, responsibilities, and risk categories. Successful TPRM requires centralized oversight for transparency, with roles well-defined to ensure consistent risk management. Future insights will address technological advancements in TPRM.

https://kpmg.com/de/en/services/audit/regulatory-advisory/tprm-governance-how-companies-strategically-manage-third-party-risks.html

Why Organizations Must Move From Cybersecurity to Cyber Resilience

Cybersecurity has shifted to cyber resilience, ensuring organizations can operate amid disruptions. Effective resilience involves decision-making under pressure, organizational coordination, and preparation for extreme scenarios via tabletop exercises. While prevention remains crucial, resilience allows organizations to manage uncertainty and external pressures. Coordination is needed across teams to navigate crises effectively. Cyber resilience requires ongoing practice and adaptation, emphasizing teamwork over just technical solutions. Testing decision-making capabilities and communication aligns organizations for better responses in crises. Resilience must be continuously measured and practiced beyond mere system recovery.

https://www.weforum.org/stories/2026/02/from-cyber-security-to-cyber-resilience/

Never Settle: How CISOs Can Go Beyond Compliance Standards to Better Protect Their Organizations

CISOs should prioritize resilience over merely meeting compliance standards to combat emerging cybersecurity threats effectively. While compliance sets basic security protocols, it may not address new risks adequately. CISOs are encouraged to enhance their strategies by extending their risk assessment timeframes, adopting scenario-based methodologies, and quantifying potential losses. Engaging with organizational leadership on these matters year-round can shift perceptions of cybersecurity from a cost to an essential investment in business sustainability.

https://www.csoonline.com/article/4128920/never-settle-how-cisos-can-go-beyond-compliance-standards-to-better-protect-their-organizations.html

NIS2: Supply Chains as a Risk Factor

NIS2 increases supply chain security requirements, emphasizing external IT risks. Companies must integrate these risks into their security strategies, transforming dependencies into management responsibilities. Effective control of supply chains involves identifying critical partners, setting security standards, and continuous risk monitoring. CISOs' roles expand to include risk communication and holistic management. Compliance under NIS2 goes beyond paperwork, demanding real security measures and transparent assessments, ultimately enhancing operational stability and turning supply chains into strategic assets.

https://www.csoonline.com/article/4128381/nis2-supply-chains-as-a-risk-factor.html

The Expanding Role of Security, Governance and Risk

2026 mandates stronger security, governance, and risk (SGR) measures as regulators enforce compliance, particularly in AI and data privacy across global frameworks. Organizations must transition from mere compliance to building robust, audit-ready systems that demonstrate resilience. Key priorities include unifying SGR initiatives, integrating incident reporting, preparing for AI governance, and maintaining cross-border data integrity. Effective SGR strategies will enhance market access and organizational credibility, establishing SGR as a crucial driver of business success.

https://www.ibm.com/think/insights/expanding-role-security-governance-risk

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