A third of Irish firms believe "softening" of US cybersecurity rules is biggest threat

A further one in four (23%) cite President Trump’s tariffs and trade restrictions as the most significant threat, while 15% point to the rollback of ESG (Environmental, Social and Governance) regulations as their top concern.

The findings emerged from the Compliance Institute, Ireland’s professional body for compliance professionals, which gathered responses from approximately 110 compliance experts working predominantly in the financial services sector.

The survey aimed to understand the key regulatory risks facing Irish financial institutions, particularly in light of recent developments in US policy.

Michael Kavanagh, CEO of the Compliance Institute, said: “These survey results highlight a clear concern among Irish compliance professionals: US policy under President Trump is becoming a significant issue when it comes to regulatory planning.
 
"In addition, over a third of respondents now see the softening of US data privacy and cybersecurity rules as their biggest compliance risk.

"This reflects ongoing uncertainty over the future of the EU–US Data Privacy Framework and the risk of greater fragmentation of US privacy laws at a state level, both of which could make managing data across the Atlantic more challenging.

"The fact that nearly a quarter of compliance professionals cited tariffs and trade restrictions as the biggest threat is also significant.

"With the introduction of the 15% tariffs on EU goods and growing rhetoric around financial and tech decoupling, Irish firms with US exposure are facing a much more unpredictable trade environment – one that could impact operations, supply chains, and financial flows.

"In simple terms, it’s very difficult to put new policies or procedures in place if there’s a potential for the rules to change on a monthly, if not weekly basis."

He added: "And while ESG may rank slightly lower in immediate concern, 15% of respondents still see the rollback of US ESG regulation as their top risk – particularly as President Trump’s administration moves to dismantle corporate sustainability disclosure rules and sideline DEI (Diversity, Equity & Inclusion) requirements.

"That divergence from EU standards not only complicates compliance strategies but could also expose Irish firms to reputational risk when operating across jurisdictions.

"US policy is no longer just a background consideration – it has become a top-tier strategic risk demanding proactive oversight, scenario planning, and cross-border coordination at the highest levels of compliance”.

The Compliance Institute survey also found that one in five (18%) financial organizations believe none of the US policy changes listed – including tariffs, ESG rollbacks, and data privacy or cybersecurity reforms – currently pose a compliance threat to their business operations.

 US policy under President Trump is becoming a significant issue when it comes to regulatory planning Kavanagh added: “The fact that one in five financial organizations believes that none of these US policy changes pose a compliance risk is interesting.

"That may reflect the fact that a cohort of financial service businesses in Ireland have no dealings with the US”.

* This article was originally published on BusinessPlus.ie.