Regulatory horizon scanning is the practice of identifying regulatory developments early. A compliance or regulatory affairs team monitors the output of legislators, regulators, standard-setters and courts in each jurisdiction where the firm operates, including consultation papers, final rules, speeches, enforcement decisions and published work plans. Each item is logged, summarised and given an initial rating for relevance and impact.
Relevant items are passed to the business areas affected, which assess what must change in products, processes, systems or documents and by when. The results feed a forward-looking register or calendar that is reported to senior management, and significant items move into formal regulatory change management for implementation. Firms may also use the early notice to respond to consultations. Many use subscription services and automated tools to gather and classify publications. Scanning is the first step in keeping a firm's compliance risk assessment and policies current, and supervisors increasingly expect evidence of it as part of sound regulatory compliance.