The Economist Intelligence Unit published an executive briefing: From Burden to Benefit: Making the most of regulatory risk management (executive summary) (full report .pdf).
It is an irony of modern business that regulation, a concept designed to reduce risk by protecting the interests of corporates, customers and society at large, has itself become one of the most serious risks that companies face. From dealing with unfamiliar regulatory frameworks in overseas markets to scanning the environment for new threats, regulatory risk management has become a time-consuming and costly activity that demands board-level engagement and a rigorous approach.
According to the report, two-thirds of respondents say the biggest problem that hinders their company’s ability to manage regulatory risk is “complexity of the regulatory environment.”
On the positive side, most said they had strong capabilities dealing with regulatory risk. But the big weakness, was the problem of dealing with multiple regulatory environments, both domestically and internationally, and juggling multiple projects.
Thanks to Leon of SOX First for pointing out the report: Compliance Challenges.