Regulatory risks

Guiding Definition

Violation of current regulations and legislation and lack of preparedness for compliance with broader changes in regulations.


  • Penalties or fines due to violations of regulations within supply chains
  • Failure to anticipate government action such as import bans or export restrictions
  • Compliance costs due to violations of environmental guidelines

Business Risks - Regulatory Examples

Water Use and Pollution

Molson Coors was fined $124,000 in 2016 after pleading guilty to two offenses in the U.K.: causing an illegal water discharge activity and breaching its environmental permit per the England and Wales 2010 Environmental Permitting Regulations.


  • Legal fees and monetary settlements for violating laws and regulations