In highly regulated industries, regulatory changes were once predictably cyclical, and the durability of a compliance and risk framework was measured largely by how thoroughly it documented controls. That standard has changed. As volatility becomes a defining feature of these operating environments, resilience is now measured by how effectively a framework helps leadership navigate uncertainty without losing strategic momentum.
That shift requires a different conception of compliance. Frameworks built for longevity need to function as living systems that help organizations interpret change, balance risk with opportunity, and move decisively amid uncertainty. After years advising senior leaders and boards across highly regulated industries, Teri Cotton Santos, Chief Compliance Officer, has seen firsthand what distinguishes compliance programs that endure. In this context, compliance must be designed to translate uncertainty, look outward as much as inward, and provide organizations with a clear line of sight between regulatory developments and strategic decision-making.
A Strategic Discipline
At its core, future-proofing compliance starts with reframing its role. Many organizations still treat compliance as a back-end safeguard, designed to catch issues after decisions have already been made. While that approach satisfies baseline expectations, it doesn’t hold up when regulatory change accelerates.
“Compliance programs need to be outward looking as much as they are inward looking,” she says. “They can provide a true competitive advantage by scanning the regulatory landscape and staying in tune with the shifts happening within the industry.”
By translating external regulatory signals into strategic insight, compliance can help organizations anticipate risk rather than react to it. An outward focus allows frameworks to remain fit for purpose even as rules, expectations, and enforcement priorities continue to evolve.
Understanding Risk as Uncertainty
One reason organizations struggle to adapt to regulatory volatility is a fundamental misunderstanding of risk itself. Too often, risk is treated as a static checklist rather than a dynamic expression of uncertainty.
“Managing risk is really about managing uncertainty,” Cotton Santos says. “It requires an honest understanding of the types of uncertainty an organization is willing to accept, and how much of that uncertainty it can tolerate while executing its strategy.”
Defining risk appetite is a strategic exercise. When leaders invest the time to articulate how much uncertainty they’re prepared to endure, compliance and risk teams are better positioned to design frameworks that support growth and enable faster, more confident responses to regulatory change.
Earning a Seat at the Table
For compliance to function as a strategic asset, it must be embedded early in decision-making. The greatest value compliance leaders bring lies in helping organizations navigate complexity before it becomes risk. Proactive engagement protects enterprise value while enabling execution, and it builds trust over time.
“A lot of the value we add comes from having a seat at the table up front,” she says. When companies consider entering a new market or launching a new initiative, compliance leaders can translate what that opportunity means from a regulatory perspective, identify the uncertainties involved, and help design strategies to manage them.
Leadership support and conviction plays a key role in future proofing risk frameworks. “There really is no substitute for leadership and commitment from senior management and from the board,” says Cotton Santos. “That tone from the top is what allows organizations to manage regulatory change and volatility while staying grounded in doing the right thing and doing things the right way.”
Technology, AI and the Human Imperative
As technology and regulation evolve in parallel, many leaders worry their compliance models will age faster than they can adapt. Santos views artificial intelligence as both an opportunity and a responsibility. “AI is exciting, and it can drive real efficiency and productivity,” she says. “But it’s not a silver bullet. There always has to be a human in the loop to check the work and ensure the information is accurate.”
As employees increasingly use AI to analyze data and summarize information, organizations must set clear guardrails. Understanding how AI works and aligning its use with company values allows employees to operate with confidence, without risking intellectual property or confidential information.
Building for Long-Term Resilience
Regulatory change management consistently ranks among the top risks facing organizations. That persistent pressure is why resilience has become a defining measure of effective compliance. “If you look at the surveys on enterprise risk year after year, regulatory change management is always near the top,” Cotton Santos says.
Future-proofing compliance isn’t about predicting every regulatory shift. It’s about building leadership commitment, clarity around uncertainty, and adaptable systems that allow organizations to respond with confidence as conditions change.
Follow Teri Cotton Santos on LinkedIn for more insights.
