The regulator of tomorrow

Shrupti Shah, Rachel Brody, & Nick Olson at Deloitte: “…Disruptive trends are making it difficult for regulators to achieve their missions. But what if this changing business landscape presented opportunities to help regulators overcome the challenges they face? In the balance of this report, we explore the potential for regulators to embrace the opportunities presented by technical and business model innovation, the increasingly digital nature of their constituents, and industries’ and consumers’ changing attitudes and behaviors to help them meet key challenges across their two main functions: rulemaking (part one) and oversight and enforcement (part two).

PART ONE: RULEMAKING

Regulators are often the agencies responsible for implementing policy mandates. These mandates can vary from being highly prescriptive to giving regulators great freedom to determine how to implement a policy. In some cases, regulatory agencies have been granted authority by Congress to monitor entire industries, with discretion as to determining how to protect citizens and fair markets.

The business of rulemaking is governed by its own laws and regulations, from the Administrative Procedures Act to approvals of proposed rules by the Office of Management and Budget. All of these processes are designed as a safeguard to protect our citizens while not unduly burdening the regulated businesses or entities.

The process of formal and informal rulemaking is well defined,¹¹incorporates input from citizens and industry, and can take time. Given the challenges previously described, it becomes essential for regulators to think creatively about their rulemaking activities to meet their policy objectives. In this section, we explore several rulemaking opportunities for the regulator of tomorrow:

Rethinking outreach
Sensing
Guidelines and statements versus regulations
Tomorrow’s talent
Consultation 2.0…

PART TWO: OVERSIGHT AND ENFORCEMENT

In addition to rulemaking, regulators oversee compliance with the published rules, taking enforcement action when violations occur. Today’s regulators have access to significant amounts of data. Larger data sets combined with increasingly sophisticated analytical tools and the power of the crowd can help regulators better utilize limited resources and reduce the burden of compliance on citizens and business.

This section will explore several oversight and enforcement opportunities for the regulator of tomorrow: