Managing this dynamic and intricate nature of change is driving organizations toward improving their approach to regulatory change management as a defined process and integrated part of a GRC strategy within the organization. Organizations are past the point of treading water as they actively drown in regulatory change from turbulent waves of laws, regulations, enforcement actions, administrative decisions, and more around the world. Regulatory compliance and reporting is a moving target as organizations are bombarded with thousands of new regulations and changes to existing regulations each year.
What further complicates this is the exponential effect of regulatory change on the business. Business operates in a world of chaos and in that context regulatory chaos. Applying chaos theory to business is like the ‘butterfly effect’ in which a small event actually results, develops and influences what ends up being a significant event. The concept uses the analogy that the simple flutters of a butterfly’s wings create tiny changes in atmosphere that ultimately impacts the development and path of a hurricane.
The typical organization does not have adequate processes or resources in place to monitor regulatory change. Instead . . .
The rest of this post can be found a guest blog on MEGA’s Corporate Governance Blog . . .