Change in Regulatory Environment

Definition:

Fundamental changes in government appetite for regulation can have a significant impact on organizations, including those not considered heavily regulated. This risk examines the challenges organizations face in a dynamic and ambiguous regulatory environment.

Analysis:

Despite general alignment on the increasing risk relevance of a changing regulatory environment, personal knowledge related to this risk is low, particularly for chief audit executives and C-suite. While personal knowledge is higher for this risk among board members, it is still lower than several other risks. Board members are somewhat more confident in the ability of their organizations to manage this important risk.

KNOWLEDGE AND CAPABILITY

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

RISK STAGE

Quotes:

“This could be a big issue for us and there is a real risk here. It is important for folks to keep their eyes on changing regulations.” –CAE, Finance

“A lot of companies are reluctant to take a step forward unless forced to.” –C-suite, Healthcare

Develop – New to OnRisk

RISK RELEVANCE

Percentage who gave a rating of 6 or 7 on a scale of 1 to 7

– Change in Regulatory Environment 67% 73%

CAE C-suite Board