You are a lead IT auditor conducting an assessment of a mid$-$sized financial institution's IT governance framework. During your review, you discover that the organization has recently implemented several new IT systems and processes to enhance operational efficiency and customer service. However, there is concern among stakeholders about the potential regulatory implications of these changes, particularly regarding data privacy and cybersecurity requirements. Additionally, there are discrepancies between the organization's IT governance policies and the evolving regulatory landscape, leading to uncertainty about compliance obligations and potential legal risks.

Analytical Based Question:

Considering the scenario described, analyze the challenges and risks associated with ensuring compliance with regulatory requirements in the context of IT governance within the financial institution. Identify specific regulatory issues and standards relevant to the organization's operations, such as GDPR$,$ PCI DSS$,$ or local financial regulations. Discuss the implications of non$-$compliance with these regulations on the organization's reputation, financial stability, and legal liabilities. Furthermore, propose strategic recommendations for aligning the IT governance framework with regulatory requirements, including measures to enhance transparency, accountability, and risk management practices.