Navigating Risk in a Transformative Era: Key Insights from Juliana Nascimento

ESG: Beyond Compliance, Towards Strategic Integration

Juliana emphasised that while Europe has been a pioneer in ESG regulation (with initiatives like CSRD), recent adjustments, such as postponing deadlines and easing requirements for SMEs, represent a refinement rather than a retreat. The focus, she explained, is shifting towards “real materiality and measuring impact,” ensuring companies demonstrate concrete contributions to sustainability, not just report data. She highlighted the continued promotion of standards like the carbon border adjustment mechanism, illustrating the EU’s commitment.

Crucially, Nascimento argued that companies integrating ESG strategically, rather than treating it as a separate agenda, are better positioned to innovate, attract sustainable investment, and create a “shared value cycle” for all stakeholders. The challenge, she noted, is no longer justifying ESG’s relevance, but demonstrating its real impact.

AI: Balancing Innovation with Accountability

On the topic of Artificial Intelligence (AI), Juliana positioned AI as “essential” for the future of GRC. She stressed that GRC professionals have a key role to play in ensuring clear frameworks for transparency, risk mitigation, and regulatory compliance are in place. She acknowledged the pioneering work of the EU with its AI Act, which categorises AI risks and establishes sanctions for violations. However, she also pointed out the importance of continuous monitoring, robust internal control systems, and self-regulation practices. The overarching goal, she argued, is to balance innovation with accountability, ensuring that AI is used ethically, safely, and trustworthily.

Data Protection: A Cornerstone, Not a Barrier

Juliana consistently refuted the notion that data protection hinders progress. She stated emphatically that data protection is not mutually exclusive with economic growth. Instead, she sees robust data protection as a foundation for trust, which in turn is essential for participation in the digital economy. She pointed to work in areas like facial recognition, and codes of practice for AI to build trust. She made it clear that fundamental principles like transparency, security, and individual rights will remain, even as technology and regulations evolve.

DEI: A Catalyst for Innovation and Reputation

The discussion also touched upon Diversity, Equity, and Inclusion (DEI). Juliana described DEI initiatives as “catalysts for innovation, engagement, and sustainable growth.” She highlighted the ability of diverse companies to adapt more readily and gain a broader view of market risks and opportunities. Strong DEI practices, she argued, enhance talent retention and improve organizational reputation, positively impacting both investors and consumers.

The US Regulatory Landscape & Global Impact: With the recent change in US administration, Juliana acknowledged that this is still very much developing. She confirmed that even with a different approach from the US, she expects to see them develop a federal privacy law.

Key Takeaways:

• Embrace Data Enablement: Move beyond a purely protective stance on data to one that unlocks its strategic value, while maintaining strong governance and security.
• Integrate ESG Strategically: ESG is not a separate agenda but a core element of long-term business success and resilience.
• Govern AI Responsibly: Establish clear frameworks for AI governance, addressing ethical considerations, bias, and security risks.
• Collaborate Globally: Recognise the interconnectedness of the global regulatory landscape and the importance of international cooperation.
• Focus on Outcomes: Adopt a principles-based approach to compliance, focusing on achieving the desired outcomes rather than simply checking boxes.
• Promote a Culture of Accountability: Embed risk management and ethical considerations into the organisational culture, empowering all employees to contribute.

Juliana’s insights highlight that the future of risk management is not about avoiding risk entirely, but about understanding it, managing it strategically, and leveraging it for innovation and growth, while operating ethically and responsibly.