The role of regulation in strategy

Although regulation increasingly shapes the structure, conduct, and performance of a wide range of industries, many companies conduct regulatory strategy as an art, not a science.

Regulation involves a continual negotiation process in which companies can manage downside risks and create opportunities.

To do so, companies should make regulation a core element of their product, business unit, and corporate strategies.

Improving the integration of regulation and strategy requires a deep knowledge of regulatory scenarios and choices, an understanding of the interests of other stakeholders, and an organization that puts regulation on the agenda of the CEO and the top team.

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