Rethinking regulatory risk: a strategy for the UK and global corporate governance

Abstract

UK companies face an increasingly aggressive regulatory environment. A recent study by the LSE shows that UK directors are ill‐equipped to deal with increasing regulatory risk. While they are aware of these growing risks, almost a third of boards do not know about the activities in their companies that could lead to a regulatory intervention. Less than one in five are “very confident” in their risk management processes. UK companies also fail to effectively monitor and influence new regulations. Businesses need to adopt a proactive approach to handling these risks, acting at all stages of the regulatory cycle. By doing so, they can afford themselves a competitive advantage, and reduce the chances of facing severe corporate and personal penalties.

Citation

Gerrard, N. (2003), "Rethinking regulatory risk: a strategy for the UK and global corporate governance", Balance Sheet, Vol. 11 No. 1, pp. 37-41. https://doi.org/10.1108/09657960310476863