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Post Pandemic Plausible Directions – Regulatory Easing is Increasing

By Marty Resnick | July 07, 2020 | 0 Comments

plausible directionsContinuous ForesightTrendspotting

We recently published a report that was a cross Research and Advisory initiative at Gartner. Analysts from many different industries, coverage areas, and teams participated in this list, that to be fair was published in early May. So it does not take into account some recent events and disruptions.

I wanted to spend the next several days sharing each one and would appreciate any feedback. The entire report  is  available Top 10 Plausible Directions Resulting from COVID-19

A webinar on this topic could also be found here.

Keep in mind, COVID-19 will have short- and long-term implications for all organizations. There are many opposing trends and parallel scenarios. These posts will explore each one.

The next plausible direction is Regulatory Easing is Increasing

Description

Reduced enforcement of laws, rules and regulations or slowing down or stalling new legislation:  Regulatory agencies will  pause or delay many of their examination activities and suspend some regulations to allow the market to more quickly respond to consumer demand.  Industry leaders and policy makers will question the value of many regulations in the post-COVID-19 environment that needed to be suspended in order to effectively respond to the market and consumers.

Signals

  • Proposed easing to rules and regulations by regulatory agencies
  • Regulations do not prevent the adverse events and impacts they were designed for
  • Less enforcement or lower fines for compliance violations

Short-Term Impacts

  • Speeds up execution and operational response times
  • Reduces cost, time and resource burdens around design/redesign of compliance tools and processes
  • Can create asset bubbles
  • Increases competitive pressure

Long-Term Impacts

  • Less accountability and transparency of corporate and individual activities
  • Can lead to more excessive risk-taking
  • Rise of monopolies
  • Loss of consumer protections
  • Increase in company profits and growth
  • Cost of compliance to the consumer

Recommended Responses

  • Continue to rely on risk and audit departments to monitor, oversee and ensure that strong controls are in place
  • Maintain open communication with regulatory agencies on status of risk and control environment
  • Divert unneeded compliance resources to other areas of the business

Just a reminder –

The entire report  is  available Top 10 Plausible Directions Resulting from COVID-19

A webinar on this topic could also be found here.

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