As we step into the new year, businesses across the globe are faced with a wave of regulatory changes that promise to reshape the corporate landscape in profound ways. These regulatory transformations, driven by evolving global standards in governance, security, and resilience, require companies to take a hard look at their compliance frameworks and risk management strategies. Two of the most impactful changes are the newly updated Corporate Governance Code in the UK and the Digital Operational Resilience Act (DORA) in the EU, which together set the stage for a new era of corporate responsibility and cybersecurity resilience.
In the United Kingdom, the Corporate Governance Code has undergone significant revisions, which came into effect at the beginning of 2025. This revised code places increased emphasis on the transparency and accountability of listed companies, particularly with regard to their internal controls and risk management practices. Under the new framework, companies are required to disclose more detailed information about their corporate governance structures, focusing on how they manage operational risks, oversee compliance, and foster ethical business practices. The overarching goal of these changes is to bolster the resilience of companies, particularly in light of the growing complexity and unpredictability of global markets. With enhanced disclosure requirements, businesses will need to provide greater insight into their risk management procedures and internal control systems, which may necessitate significant changes in their operational structures. These shifts reflect a broader trend towards more robust corporate governance, where ethical conduct, financial transparency, and risk mitigation are seen as integral to a company’s long-term success.
Across the Channel, the European Union’s introduction of the Digital Operational Resilience Act (DORA) represents another major regulatory milestone. This regulation is particularly focused on strengthening the cybersecurity and operational resilience of financial entities. With the increasing reliance on digital infrastructure and the growing threat of cyberattacks, DORA aims to ensure that financial institutions have comprehensive strategies in place to safeguard against technological disruptions and cyber threats. Under the new legislation, financial firms are required to create and maintain a set of resilience frameworks, continuously monitoring and mitigating risks related to their IT systems and third-party vendors. The law also places a strong emphasis on the ability of these institutions to recover from cyber incidents and operational disruptions quickly. The enforcement of DORA underscores the EU’s commitment to ensuring that the financial sector remains secure and reliable, particularly as it becomes more digital and interconnected.
The global ripple effects of these regulatory changes are likely to be significant, influencing businesses not just in the UK and EU, but across the globe. Companies will be forced to rethink their approach to compliance, with many required to invest in stronger internal controls, more transparent risk management practices, and better digital security measures. While meeting the requirements of these new regulations will undoubtedly demand considerable time, effort, and resources, the long-term benefits of improved security, greater transparency, and enhanced corporate governance will likely outweigh the costs. As businesses adapt to these changes, they will be better positioned to navigate the complexities of a digital-first world and respond effectively to future challenges. The evolving regulatory landscape signals a shift towards a more resilient and ethically accountable business environment, where companies must demonstrate not only financial success but also their capacity to withstand and adapt to the ever-evolving global business landscape.
