Regulatory horizon scanning is the process of monitoring, identifying and assessing regulatory changes that may impact your organization. It helps you to be proactive in your approach to regulation, rather than reactive. By being aware of upcoming regulation changes, you can plan and prepare for the impact they may have on your business.
The process of regulatory horizon scanning can be broken down into three stages:
- Monitoring: This is the process of keeping up to date with changes in regulation. This can be done by subscribing to relevant newsletters, following key influencers on social media or using a dedicated regulatory monitoring service.
- Identification: Once you are aware of a potential change, it needs to be assessed to determine whether it will have an impact on your organization. Factors such as the geographical scope, sector and size of organization impacted need to be considered.
- Assessment: This is where you will evaluate the potential impact of the change and develop a plan of action. This may involve conducting a risk assessment, preparing for implementation or training staff on the new requirements.
Why is Regulatory Horizon Scanning Important?
Organizations operate in a dynamic environment and must continually adapt to change in order to stay compliant and remain competitive. Regulatory change can have a significant impact on businesses, both positive and negative. By being prepared for change, organizations can take advantage of opportunities and minimize risks.
There are many benefits of having an effective regulatory horizon scanning regime in place, including:
- Improved decision making – Having foresight into upcoming changes enables better decision making as you will have time to assess the implications and formulate a plan
- Enhanced organizational resilience – Being prepared for change makes your organization more resilient and better equipped to deal with unforeseen events
- Reduced costs – By being proactive, you can avoid the costly consequences of being caught off guard by regulation changes.
- Competitive advantage – Having an effective regulatory horizon scanning regime in place gives you a competitive advantage as you will be able to adapt quickly to change and capitalize on new opportunities
Regulatory horizon scanning is an important process for organizations operating in a dynamic environment. There are many benefits of having an effective regulatory horizon scanning regime in place, including improved decision making, enhanced organizational resilience and reduced costs. Implementing an effective regulatory horizon scanning regime gives you a competitive advantage as you will be able to adapt quickly to change and capitalize on new opportunities.