PROACTIVE RISK MANAGEMENT IN A CHANGING REGULATORY ENVIRONMENT: THE EXPERIENCE OF UKRAINE AND THE EU

Abstract

The article explores the concept of proactive risk management as a strategic approach to addressing the challenges posed by a volatile regulatory environment. It examines the factors driving the transformation of traditional risk management models, including globalization, technological innovation, increasing regulatory complexity, reputational threats, and the growing necessity for compliance. Proactive risk management is presented as a key condition for ensuring long-term business resilience, enhancing competitiveness, and facilitating effective strategic planning. Special attention is given to the European Union’s experience, where a mature compliance culture has developed, grounded in principles of prevention, ethics, systemic governance, and technological integration (notably through GRC platforms). The role of EU regulators is highlighted, particularly their promotion of risk-based supervision, provision of methodological support, and implementation of effective enforcement practices. Advanced corporate-level practices are synthesized, such as the establishment of audit and risk committees, ethical codes, compliance training programs, and the use of AI-driven tools for continuous risk monitoring. In the Ukrainian context, the paper emphasizes the imperative of adapting European standards amid ongoing EU integration. It analyzes regulatory initiatives in the banking, insurance, and anti-corruption compliance sectors, identifying key obstacles to successful implementation: fragmented legislation, resource limitations, and an underdeveloped corporate culture. The article argues that building a systematic and proactive risk management framework in Ukraine requires political will, educational efforts, cross-sector collaboration, and the introduction of a unified regulatory framework. It concludes that adopting GRC principles based on the European model can significantly strengthen the institutional capacity of both Ukrainian businesses and the state. The article also underscores the salience of a proactive approach in ensuring business resilience amidst conditions of turbulence, as well as the imperative for Ukrainian companies to adapt to European risk management standards.