Welcome to Risk & Compliance Spotlight

Global risk and compliance are more critical than ever in today's fast-evolving business landscape. That's why we are excited to launch this newsletter, where we explore strategies, insights, and trends to help risk and compliance leaders navigate the complex world of GRC. It offers actionable advice for staying resilient in uncertain times, from mitigating risks to staying ahead of regulatory changes. Whether you're a seasoned professional or dipping your toe into GRC, we aim to inspire and empower you with the tools and knowledge to lead confidently and consistently, focusing on what matters most!?

7 Critical Aspects of the EU AI Act Affecting Your Business?

The European Union's Artificial Intelligence Act (EU AI Act) is set to impact the landscape of AI regulation globally. As the world's first comprehensive AI legislation, it will have far-reaching implications for businesses within and outside the EU. In other words, this should be top of mind!??

So, how will the EU AI Act affect you???

Let’s explore the seven critical aspects of the EU AI Act and its potential impact on your business:?

• Extraterritorial Reach: The Act applies to any company developing, deploying, or using AI systems whose outputs are used in the EU, regardless of the company's location.?
• Risk-Based Approach: AI systems are categorized based on potential risk, with stricter regulations for high-risk applications. Companies will be required to assess the risks of their AI technologies and implement strategies to mitigate any potential harm.?
• Compliance Requirements: Companies must adhere to new standards for transparency, documentation, and human oversight of AI systems, which may require additional resources for compliance and legal adjustments.?
• Data Governance Standards: Companies must ensure data transparency and adopt stringent guidelines on how AI systems process information, particularly regarding personal data.?
• ?Penalties for Non-Compliance: Significant fines can be imposed for violations, reaching up to €35 million or 7% of global annual turnover.?
• ?Global Standard-Setting: The Act will likely influence AI regulations in other countries, potentially becoming a de facto global standard.?
• Innovation and Competitiveness: While promoting responsible AI use, the Act also aims to support innovation, particularly for SMEs and startups.?

The current regulatory landscape can be challenging (to put it mildly). However, understanding and preparing for the EU AI Act's requirements will be critical for continued compliance and competitiveness.?

NAVEX Navigation – Learning from Trusted SMEs?

It’s safe to say that the artificial intelligence boom has been a game changer for just about everyone with a computer. But what does the AI revolution mean for compliance? If the AI question keeps you up at night, NAVEX’s Director of Regulatory Solutions, Jan Tadeusz Stappers , understands your concern:??

“Technological development, most recently in artificial intelligence, challenges regulators’ capacity to adjust and accommodate. Further, competing interests require a balancing act, protecting human rights while driving technological innovation.”???

“While legislators undertake efforts to regulate the AI field, hesitation to address the topic globally adds further complexity to the international compliance space, affecting organizations navigating it. The AI revolution is a prominent transformation driver towards a multidisciplinary, integrated risk management and compliance approach.”?

Start Your Journey – Where to Begin with AI Governance??

Navigating the complexities of AI governance can seem daunting, but starting with a clear framework makes the journey smoother. Start with these three practical steps to help your organization get started with AI governance.?

• Step 1: Use a vetted framework as an easy on-ramp to guide your process.?

• Step 2: Cross-reference current and future regulations to ensure alignment.?

• Step 3: Develop controls and control testing based on a solid framework.?

By following these steps, organizations can confidently move forward in their AI journey, staying proactive and compliant.?

NAVEX Mailbox - Got Compliance Questions???

Send them our way in the comments! Our experts are ready to help, and your question could be featured in an upcoming newsletter.???

Don’t Miss the NAVEX Next Virtual Conference??

Join us at the NAVEX Next Virtual Conference on September 19, 2024. This year, we’re upping the ante with solution-focused breakout sessions, a deep-dive resource library, and a live chat that will let you pick the brains of the best in the business. The insights you’ll gain will level up your organization’s risk and compliance strategies.??

And the best part? It’s completely free. We’re all about building a savvy, ethical, and collaborative community. Register today, and get serious about shaping a brighter, more ethical business world – together.??

There’s no need to keep Compliance ConneXion a secret, share this newsletter with your network and let’s build a community!?