Risk regulatory landscape in 2026: How to adapt and prioritise?

Katharina Hefter, Global Compliance and Crisis Management Leader, Managing Director and Partner at BCG, shares three key themes in regulatory trends: simplification, consistency, and AI regulations.

In this interview Katharina also delves into how companies can adapt to a fragmented regulatory environment and the role AI can play in managing risk, enhancing customer experience, and ensuring effective governance.

Key regulatory developments in 2025

As we look back on 2025, Katharina outlined three key themes that emerged as pivotal in the regulatory sphere: simplification, consistency, and AI regulation. Simplification is a trend gaining traction, particularly in the United States, where deregulation efforts are prevalent. Europe is also striving to streamline regulatory frameworks.

Consistency was another major theme, with a specific call for European regions to enhance harmonisation. The AML package and AMLA are seen as opportunities for creating a more cohesive regulatory environment for banks and insurers.

When it comes to AI regulation, Katharina noted that the trend is still evolving. Both financial institutions and regulators are on a learning journey, navigating the complexities and opportunities that AI presents.

Strategic navigation amidst uncertainty

As we approach 2026, businesses face geopolitical risks and economic uncertainties that make the regulatory environment increasingly fragmented, which is why adopting holistic risk management strategies is important.

"Risk management should not be confined to the risk or compliance functions," she asserted. "It must be ingrained across the company, influencing business decisions and ensuring resilience against risks." She also emphasised that companies excelling in resilience and agility tend to outperform their competition.

Harnessing AI for regulatory challenges

AI and generative AI offer significant potential to help companies navigate regulatory complexities. Katharina identified three key areas where AI can make an impact:

• Enhanced risk management: AI facilitates more efficient risk management and compliance through faster detection and improved decision-making processes.
• Improved customer experience: Leveraging AI tools enables companies to enhance customer experience and innovate, thereby delivering greater value.
• Responsible governance: As AI scales, it is imperative to integrate solid governance and risk management frameworks to harness AI's full potential safely and responsibly.

Explore risk regulatory trends with leading experts at RiskMinds International. Save the date – 16-19 November 2026, London!