What Are the Common Sources of Regulatory Uncertainty?
Regulatory uncertainty can stem from several sources, including:
Government policy changes: Shifts in government priorities can lead to new laws or amendments to existing ones. Judicial rulings: Court decisions can reinterpret existing regulations, adding layers of complexity. International regulations: Global trade agreements and international standards can introduce uncertainty for businesses operating across borders. Technological advancements: Innovations often outpace regulatory frameworks, leading to a lag in appropriate governance. Political instability: In regions with unstable political environments, frequent changes in leadership can result in unpredictable regulatory shifts.