The first day of Donald Trump’s second presidency has shown a resounding manner: the Trump Vance administration gives priority to canceling restrictions. I declare Freezing on new federal regulationsExecutive order requires agencies Abolishing at least 10 rules or regulations Every new one adopts, and Initial rescue operations of 80 plus Biden procedures, including Reducing the rules about artificial intelligence. Meanwhile, the government efficiency management in Ellen Musk (DOGE) was responsible for government agencies such as Treasury Ministry and Reducing employees. We are less than two months.

In organizations that have long felt the financial and administrative burdens of organizational compliance, it is only natural for members of the Board of Directors and C-SUITE to look at this change with a collective sigh of relief. Less organized means less than the budget and employees dedicated to auditing and compliance activities. But don’t start re -customizing your compliance dollars yet. Many procedures are already challenging in court and most regulations It will not be easy to get rid of Looking at the many requirements and time restrictions it requires.

This will not prevent the administration from trying – and success in many cases. The new administration will continue to click to reduce the current federal control and issue fewer new regulations. We move to an era in which government regulations will be emphasized, whatever the final details.

Risk

There is a school of thought among business leaders. From one point of view that this is the way in which the risk management should work exactly, which reflects the idea that has long enjoyed among many business leaders that “governments that rule at least at least”-and in this context, organize the least. Non -profit organizations, as well as environmental protection and consumer protection groups, sees the organization as a positive development, which enhances increased social responsibility of companies while helping to reduce the total risks in the main areas (for example, cybersecurity, fraud, climate change). The accidents won the ballot box, and we can expect a completely different organizational scene as a result.

Regardless of the side you are doing, there is no doubt that the standard cancellation makes the risk management strategy in your organization more important. Just for the disappearance of compliance requirements, this does not mean that the basic risks do. This simply means that it is up to your organization to determine how to manage the risk. The consequences of failure may be in light of the cancellation of organizational restrictions more clear than it was when the organization existed.

History also witnesses, governmental organizational intervention is often driven by basic dangers. A series of Fraud on prominent financial reports Disciplinary cases were born with a boost to improve internal controls on financial reports, which ultimately appears in the Sarbanes-Axley Law (SOX) of 2002. Risk management failure In the American banking system, the financial crisis stimulated in the period 2007-2008 and the subsequent stagnation, which eventually led to the law of reform and consumer protection in 2010. 2023. Cyber ​​security disclosure rules.

Instead of letting the market bear these risks – stakeholders and citizens bear the consequences – the government has sought to create regulations that protect everyone. If their regulations are effective in doing this, it is not the point. The important point is that the regulations are driven by risks, and that the intention of the regulations is to reduce risk.

Enhancing good habits

At their best, government regulations aim to instill good habits in their organizations. In terms of metaphorical, they are sure to eat your vegetables, drink your milk, wash your hands, and cultivate other habits that reduce risks with health and safety enhancement. Many organizations had to think deeply in managing certain risks because the government was telling them what they had to do. Accordingly, it must be forced to increase the standard cancellation of thinking about thinking: What are the real risks facing your organization, and how can you ensure that it is managed effectively?

However, the members of the Board of Directors and C-SUite leaders have a concept tendency to assume that in the absence of compliance requirements, institutions can withstand the costs of investing less resources. This may be true in some areas, such as environmental regulations, data protection and Internet detection requirements.

But now it is not the time to quickly act on these assumptions. Before you take a measure to reduce or respond to the risk management and compliance investments that your organization has developed, you need a strategic plan to protect the company. This will start with targeted conversations between the Board of Directors, C-SUITE, internal review, risk management, Infosec and compliance teams. Questions that leadership needs to be asked:

• What are the inherent and remaining risks facing your organization, even when compliance requirements disappear? Are the investments sufficient to help the organization avoid, relieve, or tend to these risks in the right way?
• How can the liberated resources be re -published strategically?
• How do you monitor the risk and guarantee difference, the changing regulations and the conversion of risks?
• How will it be Trade and tariff policies It affects the supply chain and materials/goods costs?
• How can a decline Energy and environmental policies Creating long -term risks to your organization (for example, potential inflationary effects of low energy prices, legal obligations, Trade Challenges/International PoliticsInvestor/stakeholders pressure)?
• Will immigration policies affect work and costs in your field/organization?

The era of standard cancellation is essential and an opportunity for organizations to consider the risks they face with the new scrutiny. It is also an opportunity to re -evaluate risk management and control.

I wrote a lot about how the Parliament’s continuous era clarified the transformation of risk management. Cancel restrictions leads to an increase in betting, which puts responsibility for your organization. Just because you do not have to manage risk does not mean that you should not. Ensure that your main stakeholders in your organization maintain a strategic vision of the road forward.

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This story was originally shown on Fortune.com

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2025-03-10 11:15:00