Video transcript: Mitigating risk and responding to regulatory change

Transcript

Nick Bouch: Risk is everywhere now. It's at a board level. It's at the C-suite. It's something that will drive headlines in the news.

Balaji Krishnamurthy: Regulation and compliance isn't a functional responsibility. It is the whole organisation that needs to embrace that responsibility.

Penny Flint: You need people who specialise in AI, in cyber, in privacy.

Nick: The impact of regulation across all of our clients is getting bigger. And it's not just the historic regulations, there's new regulations. Whether that's the EU AI Act, or whether that's the continual challenge on GDPR, whether it's sustainability, whether it's the tax regulation changing. They're all interconnected. They need to be interpreted. They need to be mapped to controls.

Balaji: When we think about regulations coming out of different countries, regulations issued by different bodies. Some of those are cross-jurisdictional. How do they get their arms around all of that?

Penny: Who are the third parties that you are working with? Understanding what risk arises from that third party arrangement is really important because reputationally, if something happens, you're still accountable for that third party.

Nick: Our clients are feeling this pressure more than ever.

Penny: At PwC we have cyber professionals, privacy professionals, AI, human rights, procurement specialists, that sit alongside third party risk management.

Nick: They are looking at the problem in a different way. We're not just putting regulatory experts against the problem.

Penny: We bring the best of the firm because this really is a multifaceted problem.

Balaji: We're working with a client who has a significant growth objective and ambition and is growing into lots of new regions. One of the things that we're helping them think through is what is the regulatory impact of growing into a particular region? What would be the cost of that? What would be the operational set up that they need to have?

Penny: We work with a lot of firms that work across multiple countries. That can be a real challenge for an organisation who might be launching a product across multiple countries.

Balaji: Integrating technology gives our clients much more agility in a world where we need to be responsive and our clients need to be responsive.

Nick: We are using AI to ingest all of those regulations and then deploy those controls in an optimised agentic AI fashion to reduce the cost of regulation to our clients.

Balaji: We are truly cross-sector in the way we are going about this. We are infusing that sector expertise into technology, into generative AI, in terms of training our own models and bringing together something that will accelerate a client's journey.

Nick: We are at the forefront globally on how we would deploy AI inside the regulatory landscape. We bring together that great technology, that great AI, the great people we have, to bring the best services to our clients.