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Pathlock's 2025 Digital Transformation and Access Risk Report Shows Governance Failures Are Disrupting Cloud Migration for Nearly 40 Percent of Organizations

prnewswire.com
PLTK The article discusses Pathlock's report on digital transformation and access risk, highlighting governance failures in organizations. While the report itself is a product of Pathlock, the sentiment is focused on the challenges faced by other organizations rather than Pathlock's own performance or stock prospects. The article mentions Pathlock as a leader in its field, which is positive, but the core message is about industry-wide issues.

New research reveals widespread delays in GRC planning, manual access governance processes, and compliance violations during modernization initiatives

DENVER, Nov. 19, 2025 /PRNewswire/ -- Pathlock, a leader in governing and securing enterprise identity, applications, and data, announced today the release of its 2025 Digital Transformation & Access Risk Report, a governance benchmark designed to help organizations assess risk posture and prioritize controls during enterprise-wide modernization initiatives. The report reveals that nearly 40% of organizations experienced security or compliance incidents directly linked to governance gaps introduced during cloud migration.

The report analyzes survey responses from 620 enterprise IT, compliance, and security leaders across industries including manufacturing, financial services, healthcare, and government. As organizations modernize core business functions, such as finance, HR, supply chain, and procurement, through ERP and enterprise system migrations, they face mounting complexity in managing access across hybrid environments. With regulated data flowing through both cloud and on-premises systems, the need for automated, scalable governance has never been greater. Yet the findings show that many organizations are still relying on manual processes, delaying GRC planning, and overlooking critical controls, leaving them vulnerable to insider threats and compliance violations.

Despite the regulatory pressures many organizations face, with respondents operating under major regulations like SOX, GDPR, and others, governance is often treated as an afterthought. The report highlights a growing disconnect between transformation and governance readiness.

Key findings:

"It's been nearly 25 years since Sarbanes-Oxley (SOX), yet compliance is still being ignored during major transformation projects," said Susan Stapleton, GRC Expert at Pathlock. "Companies invest hundreds of millions into these initiatives — only to face audit failures at the end because GRC was ignored. Then, they scramble to get fixes in place, which costs them double, if not triple, what it would've taken to do it right from the start. This report should serve as a wake-up call: GRC must be built into every transformation project from day one."

"The findings show that digital transformation, while essential for growth and innovation, is also introducing material business risk when governance lags behind," said Chris Radkowski, GRC Expert at Pathlock. "When organizations treat GRC as a business enabler, it becomes a catalyst for achieving resilience, reducing costs, and minimizing compliance and reputational risk."

To explore the full findings and recommendations, download the report here.

About Pathlock

Pathlock is a leader in identity and application governance, empowering Fortune 2000 organizations and the world's largest and most complex application ecosystems to meet stringent compliance requirements, including SOX, PCI DSS, HIPAA, GDPR, ITAR, EAR and more.

By delivering fine-grained identity security and governance for business-critical applications, Pathlock helps organizations reduce risk, lower compliance costs, and achieve audit and IPO readiness with confidence.

For media inquiries:

Caroline Dobyns

pathlock@icrinc.com

SOURCE Pathlock