CHILE Trends and Developments Contributed by: Carolina Cabrera, LawTech
These developments mirror broader international trends. Governments and regulators around the world are responding to increasing digitalisation and dependence on technology infrastructure by introduc - ing more sophisticated regulatory frameworks. Data protection, cybersecurity, operational resilience and AI governance are increasingly viewed as interconnected components of digital governance rather than isolated compliance obligations. These developments are taking place against the backdrop of sustained digital investment across the Chilean economy. Organisations in sectors such as financial services, retail, mining, telecommunications and critical infrastructure are increasingly incorporat - ing regulatory considerations into technology procure - ment and transformation programmes. The financial services sector provides a particularly useful illustration of this trend. Entities supervised by the Financial Market Commission ( Comisión para el Mercado Financiero or CMF) operate within a regula - tory framework that places significant emphasis on outsourcing governance, operational resilience, infor - mation security and technology risk management. In practice, financial institutions frequently assess technology projects not only from a commercial and operational perspective, but also in light of regula - tory expectations applicable to critical services, cloud adoption, cybersecurity controls and third-party over - sight. As a result, regulatory considerations often play a significant role in technology procurement process - es and contractual negotiations involving strategic technology providers. Questions relating to cybersecurity, data govern - ance, supplier oversight and operational resilience are becoming more prominent during project plan - ning and contractual negotiations. Whilst the regula - tory implications may vary across sectors, a common trend appears to be emerging: technology decisions are increasingly being evaluated not only in terms of functionality, cost and efficiency, but also through the lens of compliance, governance and risk manage - ment.
One consequence of these developments is that technology projects are increasingly being assessed through a regulatory lens. Decisions relating to archi - tecture, hosting arrangements, data flows, supplier selection and system functionality may all have com - pliance implications that extend beyond the technol - ogy itself. The Convergence of Technology, Regulation and Business Risk One of the most notable characteristics of the current environment is that technology-related risks can no longer be managed in isolation. Historically, digital transformation projects were largely driven by technology teams, whilst legal, compliance and risk functions often became involved at later stag - es. In many organisations, technology implementation and regulatory compliance were treated as separate disciplines with limited interaction. Today, that model is increasingly being challenged. A decision concerning cloud architecture may affect compliance with data protection requirements. The deployment of an AI solution may create governance and accountability challenges. A cybersecurity inci - dent may simultaneously generate operational disrup - tion, contractual disputes, financial losses and regula - tory investigations. The growing interdependence of these risks is encouraging organisations to adopt more integrated approaches to project governance. Increasingly, successful projects involve collaboration among professionals from multiple disciplines, includ - ing: • technology and engineering; • privacy and data protection; • cybersecurity; • legal and regulatory affairs; • risk management; • procurement and vendor management; and • business operations and strategy.
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