The second thing that CEOs would most like to change is excess regulation, government interference and unnecessary bureaucracy. For the past two years, CEO Survey respondents have ranked ‘over-regulation’ as the leading threat to business growth and 63% of CEOs factor the regulatory framework into their business decisions to ‘a great extent’.
The two greatest regulatory challenges for CEOs in the survey are labour laws and taxation with many CEOs calling for greater convergence. While the pace of regulatory change is not slowing and while over-regulation is often blamed for increased costs and reduced efficiencies, the best way to meet the challenge is to better manage regulation to create valuable business opportunities. A more open dialogue between business and government would, we believe, help to address many of the challenges.
One of the most negative overhangs of the post Sarbanes-Oxley era is the corporate perception of risk as something that can be processed away through layers of siloed functions. Each new potential risk tends to bring additional functions that only add complexity, cloud accountability and obscure the upside of risk taking. In reality, risk will never be eradicated by this process. Rather, it will be driven under ground along with the appetite for the type of risk-reward based performance model required to create lasting growth and value.
At PwC we can help you take risks with confidence. Our experts can work with you to develop and implement a risk strategy that safeguards your business without stifling it.
Learn more about how we help organisations to reinvent risk and regulation to create valuable business opportunities in the paper
Making smarter risk decisions.
