Staying ahead in a more volatile world
People’s trust in regulators, and the expectations they place on them, tells us that the more volatile and difficult times are, the more crucial the regulator’s stabilising, guiding influence on businesses, markets, and consumers becomes.
In a time of political upheaval, mounting anxiety about climate change, and concern about the cost of living and surging inflation, now is the right moment to revisit regulation.
Since our inaugural report published in 2018, our recent survey of citizens and business leaders tells us that perceptions of regulators has markedly improved in a number of areas.
Our research also reveals that citizens feel less protected as geopolitical, environmental, and economic risks come to the fore. As well as the need for regulators to shield citizens from harm and protect markets, regulators have a duty to encourage and enable innovation, and with it, economic growth. In fact, seven out of ten businesses think this should top their list of priorities.
But what does that look like? And what will it take to provide it? We believe regulators need a three-step reset to better protect citizens and businesses, and to encourage economic growth.
Re-examine your remit and priorities
To clear up confusion and boost buy-in, re-examine what your role as a regulator is for. While supporting government policy and championing growth, assert your independence and freedom from interference. And to make regulation as a whole function better, review how you overlap and interact with other regulators.
Walk in your stakeholders’ shoes
To improve how regulators regulate, constituents have to be treated as customers. Invest in understanding and meeting their needs in the same way leading businesses do. By tuning in to stakeholders’ needs, you’re more likely to produce the right regulation at the right times, while also making it easier to be compliant.
Adopt platform thinking
Cut the regulatory burden and achieve greater impact by developing standardised processes and systems. Doing so will cut the time it takes to develop new capabilities in the face of fast-changing risks. And by teaming up with other agencies, you can rapidly create platforms to share capabilities and solve common problems.