In the digital world of 2026, where sophisticated cyberattacks have become the norm, Governance, Risk, and Compliance (GRC) can no longer be viewed as “bureaucracy” or paperwork. It is the cornerstone of trust with customers, investors, and regulators — and the foundation for ensuring business continuity.

In Israel, the regulatory environment has intensified in recent years. This means that organizations are required not only to adopt formal policies, but also to embed a systematic approach to risk management and compliance with strict standards.

The Regulatory Framework in Israel

1. Privacy Protection Law, Amendment 13 (2022)

  • Requires organizations to adopt strict measures for managing personal data.
  • Mandates periodic audits, data inventory and mapping, and technical safeguards such as encryption and multi-factor authentication.
  • Imposes an obligation to report severe incidents to the Israeli Privacy Protection Authority.

2. Israel Securities Authority Guidance & National Cyber Regulations

  • Public companies are required to disclose cyber risks as part of their reporting to investors.
  • The trend is toward increased transparency and the integration of security-driven corporate governance mechanisms.

3. International Standards Relevant to Israel

The obligation to register databases has been significantly reduced – not every database must be registered in the public registry anymore, only those meeting certain legislative criteria, such as:

  • ISO/IEC 27001 – Information Security Management.
  • PCI DSS – for financial institutions and payment processing.
  • NIST Cybersecurity Framework – widely adopted by government agencies and multinational corporations operating in Israel.

In practice, Israeli organizations are expected not only to comply, but to demonstrate proactive implementation that aligns regulatory requirements with daily business operations.

What Is Cyber Risk Management in Practice?

Risk management is a continuous process that includes:

  1. Identifying critical assets – systems, databases, and technological infrastructure.
  2. Mapping threats – ransomware, security vulnerabilities, human error, and third-party risks.
  3. Risk assessment – combining the likelihood of an event with its business impact.
  4. Implementing controls – technical (encryption, EDR/XDR), procedural (access control policies), and human (employee training).
  5. Regular testing and review – internal and external audits, penetration testing (PT), and simulation of disaster recovery/business continuity plans.

This approach ensures that organizations act proactively, not reactively, to reduce both the probability and the impact of cyber incidents.

From Theory to Practice: Implementation in Organizations

  • Governance: Boards and executives must embed a culture where security is part of the organization’s core policy. This includes risk committees, periodic reporting, and security KPIs.
  • Risk: IT and security teams are responsible for annual risk assessments, maintaining a risk register, and attaching remediation plans with clear timelines and accountability.
  • Compliance: Meeting Israeli and international requirements while maintaining transparency with regulators and customers.

Leading organizations also conduct tabletop exercises, simulating cyber incidents to test real-time collaboration between executives, technical staff, and legal teams.

Why Is This Important?

  1. Customer and Investor Trust: Clients choose partners who can protect their privacy; investors evaluate risk management maturity as part of company valuation.
  2. Business Continuity: A ransomware attack or data breach can paralyze operations. GRC reduces the likelihood of critical damage and enables faster recovery.
  3. Regulatory Compliance & Sanctions Avoidance: Non-compliance with Amendment 13 or ISO 27001 can result in fines and legal exposure.
  4. Competitive Advantage: Demonstrating advanced risk management maturity makes organizations more attractive to customers, partners, and regulators.

Conclusion

Risk management and compliance in Israel in 2025 are not bureaucratic tasks — they are central mechanisms that connect cybersecurity, regulation, and business strategy.

Organizations that understand this and implement effective GRC frameworks will not only comply with regulations such as Amendment 13, but also foster trust, stability, and competitive advantage in a world where threats are multiplying and regulations are tightening.