FUTURE-PROOFING YOUR BUSINESS – A DISCUSSION ON BEST PRACTICES
The world of business is constantly changing!
To stay competitive, and future-proof their operations, companies must focus on the regulatory environment in which they conduct their business. Regulations and policies around certain markets are in a constant state of flux, presenting both growth opportunities, as well as risks if not managed properly.
Also, as a business leader, it’s important to ensure that your company is prepared for any regulatory or policy changes that may arise in the marketplaces you do business. Every industry faces different sets of rules and regulations, so having an understanding of how these laws could affect day-to-day operations can also help protect your investments today and prepare you for future growth opportunities.
Here are some strategies businesses should consider when readying themselves against potential shifts in the regulatory environment:
STAY ENGAGED – Staying engaged with relevant developments within various regulations is crucial in helping organizations recognize any changes that could bring about potential risks, or rewards, in the long term.
This means keeping up with current news outlets, regulations interpretations, court decisions etc., allowing you to remain proactive rather than reactive towards compliance matters concerning your business or industry, in the market where you operate. Staying engaged is also needed to keep tabs on developments in other markets, because there may be some regulatory changes that would have ‘cross-over’ effects as they may possess a global personality. An example of this is the GDPR Privacy law introduced recently in the EU but affecting many past & present US-based players alike, disrupting the way companies handle customers’ data.
IDENTIFY POTENTIAL RISKS: Even if they seem unlikely now, identifying any looming risks posed by changing regulatory requirements, and analysing and understanding them will let you avoid dealing with surprises down the line. Consider researching similar markets to determine what potential impacts those outside changes could have on yours (and don’t forget to keep up with current events).
IMPLEMENT PROCESSES THAT MEET REGULATIONS: Standards such as GDPR mean greater privacy protections by allowing EU citizens control over their data; meeting compliance guidelines like ISO 40001 offers sustainability benchmarks set by state governments and increasingly requires organizations who want access to certain incentives to meet these benchmarks. Another example is the NIST standards which ensure cybersecurity standards are met across all sectors in the United States, but determining which ones need adherence is often tricky and requires professional help in many instances. Also, making sure someone internally fully understands each one before devising implementation structures accordingly ahead of time is a big plus.
MONITOR OPPORTUNITIES & IMPACTFUL UPDATES CLOSELY: A proactive stance pays off greatly whenever new policies come into effect because understanding their implications from early stages gives companies better chances at finding favourable outcomes quickly after the rollout has taken place. A nimble response makes adjusting far easier than struggling against tight deadlines. This requires monitoring regularly via multiple sources like press releases, newspapers, think tanks and other research institutions, or even hiring multiple consulting solutions that are most expensive.
Also, investigating upcoming advancements in technology & implementing solutions preemptively before heavy regulations are set forth regarding its use can help avoid an incompatibility issue or costly retrofitting fixes in the long term. Adopting this proactive approach allows ample freedom to act outside the limitations dictated by the outside forces of these regulatory changes, reducing the amount of lingering risk and enabling a foundation of operational success in the long term, regardless of what the economic climate may be, or shifting political dynamics.
SET UP AN ALERT FRAMEWORK: One-way businesses can keep track of regulatory initiatives is by setting up alerts for any new developments either nationally or internationally. This allows them to have ample time to adjust their strategies according to the latest guidelines, giving them an advantage against other companies who may be unaware such decisions were occurring until after already gone into effect has been passed. Additionally, proactively researching current legislation helps maintain greater compliance levels overall, potentially saving costs associated with potential non-compliance.
In conclusion, businesses need to stay ahead of the curve when it comes to regulations and policies if they want to remain competitive in their industry. As a business owner, you should be actively monitoring any changes or updates related to regulatory environments in your local economy as well as abroad. Focusing on staying up-to-date with these changes will help ensure that all necessary adjustments are made accordingly so that your operations remain compliant and profitable even though regulations may vary from country to country or state to state.