What does the Relevance column in the Short-term regulatory risk in Datamaran's Executive Dashboard indicate?

Datamaran provides you with each regulation’s relevance to help you identify what to prioritize in your ESG compliance strategy.

What does the Relevance column in the Short-term regulatory risk indicate?

 

The Key Regulation tag allows you to identify and flag critical regulations in the context of identified risks or material topics.

A regulation is key when it has some of the following characteristics:

  • It establishes disclosure requirements 
  • It imposes sanctions
  • It establishes or suggests measures for observing compliance
  • It is a foundational law that defines the main rules for the market or sector
  • It sets standards or best practices
  • It has a broad scope of application or high impact on the regulatory activity of other policymakers or countries 
  • It creates new rules

The High, Medium or Low relevance is a combination of different factors:

How recent the regulation is: to this extent, a high score is given to proposed regulations introduced within the last six months, followed by proposed regulations introduced within 6 to 12 months; active regulations enacted in the previous 12 months, and finally, all the rest of active regulations. This is because recent regulations more likely represent a new o emerging risk to our clients; therefore, they need to draw their attention to them, assuming older regulatory developments are already taken into consideration.

Regulations with penalties or sanctions have a higher score than the ones with no penalties as there is an evident compliance risk associated.

The related regulatory activity is the number of regulations linked to the specific initiative in our database. The more links a regulation has, the higher the score, as this indicates the broad scope of application or high impact on the regulatory activity associated with the initiative.

Datamaran considers proposed regulations as relevant because they represent emerging risks that companies need to be prepared for.