Will technically driven risks be the most likely cause of compliance problems for companies in the following year?
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We live in a world of ruthless uncertainty. For compliance teams, this uncertainty normally means only one thing – cyber security risk. Against this background you could think that the volatility of the worldwide economic landscape would be the main cause of compliance issues for companies this year. But does this environment actually increase the danger of other risks?
In March of this year, our report designated the opinions of 300 regulatory leaders from all over the world on global trends with market abuse and trading monitoring. One of the most important findings was that the majority (64%) of the regulatory professionals said that cyber security risks would most likely cause compliance problems in the following year. The following was, not surprising, global economic uncertainty (58%), followed by the increasing complexity of the regulations.
Given that a lot has happened this year, this ranking remains the same? Or do other market factors play a greater role than expected?
Chief Executive Officer and founder of EFLOW GLOBAL.
The role of technically driven risks
AI is of course in the heart of technology -driven risks. It has become both the enemy and the ally of compliance. Although AI trade models are designed to optimize for profit and increase efficiency, their rapidly accelerating refinement means that they have the potential to become increasingly unpredictable. As AI-driven trade strategies work together, market movements become more difficult to control and predict. This is just one of the reasons why the benefits of AI Tools Also involve considerable risks.
These dangers explain why their own trading agencies, which rely on high -frequency, algorithmic trade strategies, mainly related to technically driven risks, in which 70% of the respondents choose this year as an important problem.
At the same time, however, AI becomes a great assistant for compliance teams. Effective surveillance now depends on machine learning and AI to detect nuanced and initially hidden connections between instruments, companies or markets. These insights can support compliance professionals in detecting increasingly advanced forms of market abuse, while it also reduces false positive reports-an important resource-drain for monitoring teams.
Of course, technically driven risks are not only limited to AI. Off-channel Electronic Communication (ECEDCS), where employees communicate through non-monitors order apps such as WhatsApp Or signal, current important compliance risks, while the increase in clarity of the regulations on digital assets, such as the second part of the MICA regulation of the EU, which came into force in December 2024, means that their journey to the mainstream will probably accelerate alone.
What is true, however, is that global uncertainty increases these risks.
How global unpredictability corresponds to the increasing regulatory action
Worldwide economic unpredictability has undoubtedly been the story of 2025 so far. US trade rates, geopolitical conflicts, disruption of the supply chain and economic volatility have created a trade environment where the next step is impossible to determine. But it is also the case that this uncertainty is more accepted, whereby supervisors and companies adapt to ensure that they are set up to resist unexpected twists and turns in the market.
So how do companies mitigate against this uncertainty from a regulation perspective? An approach is to ensure that you have strict and robust trade supervision Checks in place. In recent years, regulators, instead of mainly levying fines for abuse, have aimed at insufficient ECEDCCS registration and trading monies and controls.
Our report illustrated how commercial and eCeds supervisors were good in 2024 more than three quarters ($ 1.4 billion) of total enforcement action.
Why robust traditional monitoring control is based on compliance
Some events are impossible to predict. Worldwide uncertainty is always a factor, so robust checks are needed to limit risks and to maintain compliance. The current compliance technology is already going to manage this rising reach of risks, with functions such as conditional parameters that can adapt to market volatility and liquidity, or sandbox environments to test new configurations in a controlled low risk setting. These developments are a crucial step in building systems that can respond to the complexity of the risk of current markets and ensure that companies can keep track of the legal requirements.
With ECEDCS and trademark monitoring that fall under particularly intensive regulation investigation, the compliance strategies that integrate and ECEDCS data together are those who are best placed to manage risks this year. Although commercial data provides measurable evidence of suspicious activity, the intention is often in communication data. By using such an integrated approach, compliance teams can recognize abuse that may otherwise not be visible and build extensive cases.
Controlling the uncontrollable
It is too early to call which risks cause the most compliance problems this year. But there is no doubt that the three areas that are emphasized by regulatory professionals in our report are in line with the current compliance reality. Instead of weighing one risk above the other, it is increasingly compliance with an integrated and holistic approach that explains the relationships between these risks.
It is of course necessary to be aware of which risks are a certain problem at a certain moment. But an integrated approach can bring risks to light that would otherwise remain hidden. Above all, where it comes down, control is: when external events are deep unpredictable, regulations processes and systems that are performed robust, well -designed and efficient are worth their weight in gold.
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This article is produced as part of the TechRadarpro expert insight channel, where today we have the best and smartest spirits in the technology industry. The views expressed here are those of the author and are not necessarily those of TechRadarpro or Future PLC. If you are interested in contributing to find out more here: https://www.techradar.com/news/submit-your-story-techradar-pro
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