General Regulatory Environment

Regulatory environment definition

In a business context, the regulatory environment refers to the legal and political forces that change the regulations to which the company must adhere.

What is a General Regulatory Environment document?

A general regulatory environment document outlines the rules and regulations that govern your company’s business operations across jurisdictions, and the consequences of any non-compliance.

The document outlines the regulatory frameworks that impact your company and the key regulators that oversee those frameworks. It also indicates any historical, or upcoming decisions and projects that have been or may be impacted by the regulatory environment, and any anticipated impact on your company.
These regulations govern the financial, operational, technological and legal aspects of your company and vary across business, industry and geography.
They may be set by federal, state or other government entities; public organizations; or a relevant industry bodies.

Why is a General Regulatory Environment important for business today?

A general regulatory environment document enables your company to:

• Evaluate the impact of local regulations on your operational performance and growth potential
• Assess the risks and legal liabilities of non- compliance of regulations to your business
• Evaluate the financial and operational expenses in complying with various regulations

Why is a General Regulatory Environment important for an event tomorrow?

A general regulatory environment document is important for an event tomorrow, as it helps:

• Assess the current and potential regulations that may be applicable to your business
• Evaluate your company’s compliance with the regulations and the impact of non-compliance on business operations
• Safeguard against unexpected expenses in the form of legal fees, government taxes and penalties related to non-compliance

Pros of addressing General Regulatory Environments

• Improvement in operational efficiency by establishing policies to ensure internal adherence by your employees
• Risk mitigation by ensuring compliance with the regulations affecting your business across jurisdictions
• Assessment of risk and potential cost of non- compliance vs compliance
• Reduced cost of due diligence as a result of this useful overview on the regulatory environment

Cons of not addressing this topic

• Lack of clarity amongst employees on the regulatory environment under which the company operates
• Restriction on your ability to expand or operate in a geography due to inadequate understanding of regulations
• Increase in your company’s risk of liabilities, fines and litigation due to non-compliance.