AI has driven massive change in three years, but governance hasn’t kept up, creating integrity and compliance gaps. Risks from hallucinations, misunderstood outputs, and democratized use are now clearer, while some organizations are cutting soaring AI costs.
Ruth Prickett
Ruth Prickett graduated from Cambridge University with a BA hons in History and has specialized in business and finance journalism for the past 20 years. She was editor of Financial Management, the magazine for the Chartered Institute of Management Accountants, for many years before relaunching and editing Audit & Risk magazine for the Chartered IIA. She has written for a wide range of specialist business titles and drafted white papers and reports for clients including HSBC and Vodafone.
Posted inRegulatory Enforcement
FCA warns firms to tighten non-financial misconduct compliance after Crispin Odey’s lifetime ban upheld
The U.K. financial regulator has warned firms that it won’t tolerate a “slapdash” approach to ethics and non-financial misconduct.
Posted inManufacturing
Manufacturers of EU digital products must now report cyber incidents within 24 hours
If you make or sell digital products in the EU, you must now report all exploited vulnerabilities and “severe” incidents that impact their security within 24 hours of becoming aware of them. These rules apply to every sector that produces products with a digital element – from baby monitors to smart watches and apps.
Posted inArtificial Intelligence
U.K. AI risk management toolkit targets current and future compliance
The U.K. government has published an AI Risk Management Toolkit for “multidisciplinary teams” who work with AI implementations, procurement, or delivery.
Posted inAccounting & Auditing
New audit quality control standard amended to reduce compliance burden
Important revisions to the new audit quality control QC 1000 standard have been announced by the Public Company Accounting Oversight Board. The intention is to increase flexibility for audit firms and reduce compliance costs.
Posted inAccounting & Auditing
U.K. promises corporate reporting reforms will slash compliance costs and focus on reports’ purpose
The U.K. government has published a consultation promising “once in a generation” changes to corporate reporting. It said “common sense” changes will save companies more than $603 million a year.
Posted inArtificial Intelligence
Moody’s urges banks to integrate compliance, culture and AI governance to accelerate processes and drive growth
Compliance teams must focus on governance, culture, and “explainability” to help banks thrive using AI in a competitive, complex regulatory environment. A new survey from Moody’s found this is why most banks now embed compliance from a project’s earliest stages, with only 17 percent treating it as a “final approval gate.”
Posted inAccounting & Auditing
IIA publishes guidance on how the Three Lines Model and ERM can meet evolving organizational risks
Two new position papers by the IIA highlight the way corporate governance is maturing in line with rapidly emerging risks. The documents focus on the Three Lines Model of governance and on enterprise risk management and set more ambitious parameters for collaboration between multiple governance functions, including compliance.
Posted inSurveys & Benchmarking
KPMG report urges CCOs to collaborate and invest to boost operational resilience
Enhanced operational resilience is key to improving responses to interconnected cyber, third-party and regulatory risks, according to KPMG’s 2026 chief ethics and compliance officer survey.
Posted inRegulatory Policy
Deloitte agrees to pay U.S. government $21.5 million to settle alleged DEI discrimination
Professional services firm Deloitte has agreed to pay the U.S. government $21.5 million to settle a case alleging that the firm’s employment practices were discriminatory.
