Board oversight of risk and compliance in a changing regulatory environment

As seen in Bloomberg Law

The Trump administration has often stated that it plans to roll back regulations in an effort to create a more business friendly environment. Even if that comes to pass, boards of directors will continue to have their work cut out for them in safeguarding their company against regulatory and compliance risk. Indeed, the boards’ responsibilities may just have gotten more challenging.

While the current administration has said it is committed to reducing regulations by 75 percent (as reported in a Jan. 23 Business Insider article ‘‘Trump: We’re going to ‘cut regulations by 75%’ and impose a ‘very major border tax’’’) companies will face increasing regulatory demands, not merely at the federal level, but also at the state and global levels where it is likely that there will be more, not less, regulatory and enforcement activity. With an uncertain and evolving regulatory landscape, and the ever increasing cost of compliance, boards need to be confident that the company operates in a safe and sound manner. They also need to remain vigilant that the business, risk and compliance functions are addressing current, as well as emerging, risks in a timely manner.