Regulation is a cloud that can have a bright silver lining.
Lets suppose that you have old systems ridden with tech debt and propped up by manual processes.
Those powers that be are so used to the situation that the idea that the tech debt or the manual processes are a problem just doesn't register. They are chasing the new shiny ball.
All of a sudden regulation comes along and lifts up the rock and shines a bright light underneath it and reveals the superating horrors squirming underneath!
Too many people have too much access to too much data almost certainly meaning a failed regulatory audit.
All of a sudden you have the impetus and support to fix a load of old problems and simplify the way your systems work. Do this well and not only will you pass regulatory inspection but you will also demonstrate the art of the possible, how good things could be if the prime focus was delivering something maintainable, scalable, flexible.