12 Virtual Brochure – March 2025 Commentary on significant and increasing risks 1.4 Changes in laws and regulations ppt compared to 2024 On average, addressing the implications of changing laws and regulations continues to be rated a highly significant strategic risk across multiple European business sectors. It’s clear from the ECIIA report that underlying factors derive particularly from new EU legislation. As in previous years, respondents cite the challenges of implementing the European Union’s Corporate Sustainability Reporting Directive (CSRD) which requires large companies to report on a wider range of environmental and social issues. The report also highlights the implementation of the Digital Operational Resilience Act (which is intended to harmonise cybersecurity rules across financial organisations), the NIS2 Directive (aimed at strengthening cybersecurity measures in organisations supplying essential services); and the impact of embargoes and sanctions. Considerations for HE The legal and regulatory changes cited by European businesses are unlikely to apply to many UK HE institutions directly, unless they’re operating with the EU. Reflections on sustainability reporting are addressed at 2.6 below. Uniac’s analysis of HE strategic risk registers indicates that on average, while compliance with changing UK laws and regulations ranks highly as an inherent risk, it ranks relatively lowly in terms of residual score. This suggests a high degree of confidence in the controls in place. However, the cost to institutions of complying with regulatory requirements which apply specifically to the HE sector is high. Universities UK (UUK) has called out 3 the complexity and lack of coordination between a number of HE sector’s regulators and the need for review and reform, while GuildHE 4 has called for the disproportionate cost of regulation on smaller institutions to be reviewed. While much of the sector’s focus will be on engagement with the government regarding, HE regulation, we would encourage institutions to ensure they continue to monitor relevant legal and regulatory developments in the EU which may impinge on UK-based organisations in future. 2 https://www.universitiesuk.ac.uk/what-we-do/policy-andresearch/publications/ opportunity-growth-and-partnership 3 https://guildhe.ac.uk/guildhe-spending-review-submission/
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