Trends and Strategies in Regulatory Risk Management
Regulatory risk is top of mind for nearly every company. Consider that respondents to Marsh’s 2016 Excellence in Risk Management survey placed regulatory risk as second only to cyber risk as the top area from which critical risks will arise.
It’s important for organizations to develop a team approach to identifying, understanding, and managing regulatory risks, according to panelists on Marsh’s May 25 The New Reality of Risk®.
The panel discussed regulatory risk management with examples drawn from areas including data privacy, environmental liability, workplace safety, and executive responsibility.
“Given the complexity of the regulations that business face, particularly around cyber and privacy, I don’t know that there is an applicable ‘one-size-fits-all’ regulatory compliance strategy,” said Tom Reagan, Marsh’s Cyber Practice leader. “Every industry is different, and every company has its own corporate practices and level of sophistication in privacy programs. And so compliance programs will be different.”
Still, he said, a team approach that starts with buy-in from the C-suite and board will help streamline compliance efforts.
Panelists also discussed:
- The Securities and Exchange Commission focus on individual accountability.
- Hot spots in global environmental regulations.
- New rules from the Occupational Safety and Health Administration (OSHA).
- The impact of changes in cyber regulation from the EU.