A Three-Pronged Approach For Security Reviews In A Changing Global Landscape

Forbes

5 days ago

Pukar C. Hamal is CEO of SecurityPal, a trusted partner handling startup and Fortune 500 Security Reviews for OpenAI, Figma, Snap and more.
As we approach the midpoint of 2025, the world is witnessing a profound transformation in the regulatory environment. From Washington to Brussels, New Delhi to London, governments around the world are redefining their approaches to business oversight, data protection and international trade.
For businesses, this changing regulatory landscape poses both risks and opportunities—particularly when it comes to security reviews, the critical process that ensures vendor partnerships comply with privacy laws, data regulations and frameworks like the EU's GDPR.
At my company, we've seen firsthand how these changes impact companies, and I believe now is the time for businesses to adapt strategically to thrive amid uncertainty.
Changing Landscapes
In the U.S., on January 31, 2025, President Trump signed the executive order 'Unleashing Prosperity Through Deregulation,' announcing a 10-to-1 regulation reduction ratio—proposing 10 existing rules to eliminate for every new one proposed. For security reviews, this could mean a lighter federal burden, particularly for companies navigating U.S.-specific frameworks like HIPAA or CCPA.
However, deregulation at the federal level doesn't erase complexity—it shifts it. I think states with robust privacy laws, like California and New York, may double down, creating a fragmented compliance map (registration required) that businesses must still traverse.
Globally, the picture grows even more intricate. Last year, GDPR fines decreased from 2023, while the forthcoming EU AI Act—set to take effect in stages through 2026—will impose specific requirements on AI systems, many of which underpin modern vendor operations.
Meanwhile, India's Digital Personal Data Protection Act is gaining traction, mandating data localization and adding another layer of compliance for multinational firms. In the U.K., post-Brexit regulatory divergence from the EU is accelerating, while countries like China continue to prioritize state control (registration required) over data flows.
This global patchwork means that a vendor compliant in a deregulated U.S. market might still fall short in Europe or Asia, putting cross-border contracts at risk.
The Importance Of Security
Security reviews sit at the heart of this changing landscape. Proposed tariffs on imports and incentives for domestic production could further disrupt global supply chains, forcing businesses to reassess vendor ecosystems.
Yet, deregulation doesn't mean a free-for-all. Stakeholders—investors, customers and international partners—still demand robust security and compliance, especially in industries like tech, finance and healthcare. Companies that misread this shift as a license to cut corners could risk reputational damage and legal exposure in stricter markets.
How Businesses Can Respond
So, how should businesses respond? I advise a three-pronged approach: agility, visibility and partnership.
Compliance frameworks must be flexible, built to adapt as regulations evolve. Static, one-size-fits-all security review processes likely won't cut it when a new state law or EU directive can upend vendor relationships overnight.
Businesses can start by mapping their current compliance landscape, identifying points vulnerable to regulatory shifts and introducing modular review processes. Another good step is establishing internal cross-functional teams to monitor emerging regulatory trends and adapt policies as needed.
It's a good idea for businesses to have real-time insight into their vendors' compliance postures, down to the granular details of data handling, breach protocols and jurisdictional exposures. With regulations splintering, a vendor's risk profile in California might differ starkly from its standing in Germany. Without visibility, companies risk blind spots that could derail multimillion-dollar deals or trigger regulatory penalties.
To avoid this and increase visibility, companies should implement regular vendor audits, establish standardized self-reporting procedures for partners and leverage industry frameworks—such as SOC 2 reports and ISO 27001 certifications—that offer independent validation of vendor security practices.
Collaborating with experts who can interpret regulatory trends and anticipate shifts—whether it's a rollback of Basel III capital rules in the U.S. or new AI oversight in the EU—can give companies a strategic edge. By establishing ongoing dialogue with industry associations, legal advisors and compliance specialists, companies can stay informed about emerging regulations.
Having clearly defined roles and communication protocols with partners upfront will also ensure alignment, accountability and smooth responses when regulations shift.
The stakes are high, but there's also a big opportunity at play. Companies that master security reviews in this new era could turn compliance into a competitive advantage, winning trust from clients and partners wary of regulatory pitfalls.
Moving Forward
Looking ahead, volatility could define the regulatory landscape. Regulatory shifts may streamline U.S. operations, but many global counterparts are tightening, and trade tensions could cost American firms steeply if they misjudge the shift. Security reviews, once a back-office task, are now a C-suite priority.
Business leaders should view this moment as a call to action. By embracing agility, ensuring visibility and forging partnerships, companies could transform regulatory challenges into strategic wins. The era of static compliance is over. In 2025 and beyond, I think those who move fast, see clearly and collaborate smartly will lead the pack. The regulatory tide is turning—and businesses must turn with it.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?