What’s your action plan for regulatory risks?

Food, beverage and Agribusiness always offer a high profile and high impact regulatory outcomes which resonate with their consumer base. Hence, the related companies need to have a well laid out plan to contemplate the risks arising out of uncertainties of regulation and its legal implications. Many times there exists a huge gap between understanding the regulations and mitigating them. This often happens because of non-existent plans in advance. It is always good to have a backup plan. Here is how your regulatory risks can be effectively kept in check:

  • Having a complete understanding of the sector that you are in works miracles. It precisely involves in knowing about the type of market. Though most of all markets are increasing becoming perfectly competitive, it is always good to know its reserved oligopolistic nature. The knowledge about the degree of regulation, its norms implies directly on the extent of data shared among your competitors. Determine the importance of handling the sensitive customer data to engage directly with customers. It helps in social listening and implies on product betterment.
  • Consider training and incentives within the organization. Are your employees being trained sufficiently enough to handle every minute process in the plant up to regulatory framework is an important task to be informed, all the time; Any lacuna of knowledge in relevant production, packaging or distributing has to be addressed immediately. Sales target are to be monitored so as to fall in line with compliance.
  • Have a constant eye for early warning for catching any malevolence in every part of the product value chain. IT system needs to be monitored efficiently with document retention policy such that the data is never compromised. Substantial consequences follow businesses that have failed to secure evidence of their won wrongdoing. This self- reporting should yield positive effects when any deviation is found in process or product. This requires constant monitoring with cloud-based software like Rain plus. Keeping a self- reporting system of regulations always have benefited the Agribusinesses greatly.
  • Have a backup plan in case of rejection or recall. Read here about Recall Plans.

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