Risk-Based Digital Compliance and Organisational Roles in EU Regulation

Abstract

This article examines the organizational side of digital compliance in companies operating under key EU regulations (GDPR, the AI Act, NIS2, and the DSA). A common thread across these regimes is the adoption of a risk-based compliance approach: organizations must conduct continuous risk assessments and implement controls proportional to identified risks. Equally, the governance ethos of these laws places accountability at the highest corporate levels. Notably, the NIS2 Directive imposes direct obligations on boards of directors and senior management to oversee and approve cybersecurity risk management measures. Similarly, the Digital Services Act requires top-level oversight by mandating independent compliance functions with direct reporting lines to the board. This elevates digital compliance from an IT or operational concern to a boardroom priority, underscoring that senior leadership must actively ensure adherence to these complex obligations. The article delineates the distinct roles of key officers in managing digital compliance. Data Protection Officers focus on GDPR privacy mandates, Chief Information Officers/Chief Information Security Officers (CIOs/CISOs) handle cybersecurity defences, Compliance Officers coordinate regulatory adherence, and Chief Financial Officers (CFOs) integrate compliance into enterprise risk and control frameworks. In-house legal counsel (General Counsel) provides broad oversight across these domains and regularly advises the board on compliance and risk matters, often supported by external advisors for specialized expertise. A practical challenge is that these functions often operate in silos with insufficient cross-functional coordination. The article argues that the General Counsel, by virtue of a wide remit and direct access to the board, is best positioned to orchestrate an integrated digital compliance strategy. It concludes that strengthened governance structures and legal leadership are vital to breaking down silos and aligning corporate practices with a holistic, risk-based compliance culture.