Definition
Regulatory Risk is the potential for laws, regulations, or government policies to change and negatively affect a startup`s operations, profitability, or business model.
Frequently asked questions
What is the regulatory risk?
Regulatory risk is the chance that changes in laws or policies will negatively impact a company`s financial performance or operations.
What is regulatory change risk?
Regulatory change risk is the threat of financial loss due to new or altered laws affecting a business`s operations.
What are considered potential negative effects of government regulations?
Government regulations can increase costs, limit innovation, and slow economic growth due to compliance burdens.