Regulatory changes can be challenging at the best of times but with many businesses focused on day-to-day survival, recent rule changes have proved particularly problematic. In the early stages of the pandemic, governments had to act quickly to protect lives and support the economy, meaning businesses had little time to prepare. As attention turns to the future and recovery, further regulatory changes are inevitable. With many governments talking about a ‘green recovery’ environmental, social, and governance
regulations may tighten.
Grant Thornton’s IBR data shows that concerns over regulations and red tape have risen during the crisis, with 47% of global respondents identifying regulation as a constraint in H1 2020 compared with 43% in H2 2019.
While regulators may tighten rules in one area, and create greater flexibility in another, businesses need to ensure theycan meet new compliance regimes and not miss out on incentives that could help their recovery.