Rather than viewing #EU regulations as a burden, #US companies can use them as a strategic compass. By embracing #principlesbasedcompliance and aligning with global standards, businesses can drive innovation, strengthen #riskmanagement, and build long-term value. The shift toward evidence-based #compliance in the EU further underscores the need for organizations to develop robust #governance frameworks that go beyond mere adherence and demonstrate real effectiveness. As the #regulatory landscape continues to evolve, adaptability and a commitment to ethical governance will define the leaders of tomorrow. US companies that proactively integrate these principles will not only mitigate #risk but also unlock new opportunities for growth, resilience, and trust in an increasingly interconnected world . . .
Graeme Keith
1mo
This is an incredibly important distinction. Thank you, Michael Rasmussen for this incredibly clear exposition.
Michael Rasmussen, Thanks for sharing this article providing a nuanced perspective on the contrasting regulatory landscapes of the EU and US, emphasizing how these differences shape global business strategies. I particularly appreciate your analysis of the EU's stringent regulations and the US's evolving approach. Building upon your insights, it's fascinating to observe the EU's regulatory influence extending globally, what is currently being called as the "Brussels Effect." This effect compels companies worldwide to adopt EU standards to access the European market. The way, the EU's General Data Protection Regulation (GDPR) has become a global baseline for Data Privacy regulations, prompting businesses across the globe to enhance their data protection measures.
GRC Analyst & Pundit at GRC 20/20 Research, LLC
1moWhile I mention the EU prominently, this is also the same approach to compliance and risk in the United Kingdom. Contrast UK Corporate Governance Code with Sarbanes Oxley for example. The UK Corporate Governance Code is very objective-based principle-based and outcome-based, and is done on a comply or explain basis.