Exco Risk

How do you derive value from regulation?

regulation

ticking the box2

VUCA – an environment of relentless Volatility, Uncertainty, Complexity and Ambiguity. The Financial Services Industry faces the greatest wave of regulation. The impact of which is far–reaching. Only those who can derive value from regulatory change will triumph in a VUCA world.

How do you derive value from the hurdles of regulation you are faced with?

Leading organisations (globally and in South Africa) are seeing regulatory change as an area for competitive advantage. In our experience, this means that an organisation needs to understand the rationale behind regulation, how regulation can become an opportunity in the business and how to position it as such to its key stakeholders such as employees, shareholders and customers. This is according to Deloitte publication: Regulatory change: It’s not about “ticking the box”.

There are several reasons as to why the “ticking the box” approach to managing the people impacts of regulatory change is not effective:

  • Regulation is often too technical and vague.
  • The introduction of regulation often takes a long time, with several iterations of drafting regulation, shifting deadlines and content changes
  • Employees are becoming irritated by the rapid growth of regulation and the corresponding growth in reporting, administration and work, on top of a full-time job and all the other transformational programmes that are already taking place.
  • There is a lack of focus on the impact regulation has on people as a result of policy, process, technology and reporting changes.

Read this piece to learn how leading organisations are responding to regulation, and how your organisation can derive value from regulation.

If you have any questions or require a more detailed discussion, contact Jissille Pillay at jpillay@deloitte.co.za

About the author

Deloitte South Africa

Deloitte is one of the country's leading professional services firms in Southern Africa, and is dedicated to assisting companies succeed in the business environment- whether it be through our tax, audit, consulting or financial advisory services.

At Deloitte, we understand that solutions are not just a static one dimensional report, but rather, an integrated and innovative answer that helps our clients to better understand key complex industry issues. Not only do our solutions assist our clients in making strategic business decisions, but our unique approach also allows companies to succeed in a competitive business environment by staying ahead of industry trends. Through the collective expertise of nearly 3600 people in 8 cities in South Africa and in 16 cities in Southern Africa, and as a member firm of the global organisation Deloitte Touche Tohmats, we have access to deep insightful and intellectual capital of more than 150 000 people worldwide.

Deloitte- A Culture of Excellence
A key contributor to Deloitte and our culture is the development of human capital. At Deloitte we believe in investing in our culture, in our clients and in our people. The very essence of Deloitte is to offer services of excellence, to both clients and staff, and we believe that it is this culture of excellence that will help us succeed.

1 Comment

  • “Ticking the box” is used so frequently because
    it save training cost,
    time completing the assignment,
    shows that the work was done (not necessarily well).
    On occasions the financial and reputational damages exceed the saved cost materially.
    Ticklist do not show that the work was done, only that a tick was place in the correct position. Such lists without supporting documentation are quite useless.

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