Regulatory risk: anticipate to make better decisions

Regulatory requirements can affect licences, processes, contracts, costs and investment decisions. When they are considered only after a problem arises, the response is often more urgent and expensive.

A preventive approach starts by identifying the requirements applicable to the business and understanding which internal processes they affect. Not every obligation carries the same level of risk or requires the same response.

Clear ownership helps ensure that obligations are monitored and fulfilled. Calendars, records and escalation procedures can support this discipline.

Monitoring legislative and regulatory changes should be accompanied by an assessment of their practical impact. Organisations need to determine what changed, who is affected and what action is required.

Integrating regulatory risk into business planning supports better-informed decisions and more efficient use of resources.