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Regulatory change management’s role in the transformation of the energy industry

Posted by: Sarah Hamilton | June 21, 2018

Home/ Blog / Regulatory change management’s role in the transformation of the energy industry

The energy industry is geared up for a transformation in the form of compliance management. With changing regulations, companies will need all the tools and support they can get to successfully transform. Regulatory change management solutions and compliance management solutions will become necessary in facilitating this transformation. This isn’t the first time that the energy industry has transformed. The ‘’clean coal’’ revolution was a breakthrough that changed how energy companies operated. While it was clear that coal will always be harmful for the environment, the industry researched and developed solutions that greatly reduced the harm caused by coal.

Clean coal may seem like a contradiction in terms to many, but the reality is that while not fully clean, it is much, much cleaner than coal used to be.

The changing world of energy industry

Now we are moving beyond coal and into more sustainable energy sources. While clean coal was a significant transformation, it was nothing compared to what lies ahead. Previously, when a lot of concern was raised about the effects of coal, clean coal was the only viable solution. The world needs energy sources and coal is important, so a way had to be found to use it in the best way possible. But, thanks to the technological advances in the previous three decades, there are now other viable options. There are already many different solutions being tested out on a global scale. Multiple countries have attempted (and succeeded) to last more than a day without using any coal for energy.

One thing is obvious – organizations will need to become more serious about sustainability management. Sustainability management solutions are already a necessary part of any energy related business. Companies will also need to look beyond sustainability management, and focus on regulatory change and compliance management to be ready for the future.

The role of regulatory change management

Regulatory change management solutions have become a necessity for organizations during these times of transformation. We aren’t just witnessing the changing attitudes of people or businesses towards better environmental standards in the energy industry – the same change is being seen in governments all over the world.
Governments are becoming more concerned about the environment, and thus they are focusing on creating more regulations for the energy industry. Changing regulations can quickly change the scope and feasibility of any future or ongoing projects for organizations. Thus, not keeping a close eye on changing regulations can be catastrophic for organizations. The solution is a regulatory change management solution that automatically notifies organizations of all changes. When this much change is expected in regulations, getting a solution that helps manage the changes is an obvious choice.

The role of compliance management

As governments get more serious about the environment, they are scrutinizing organizations at a level we have not seen before. As a result, governments are taking a more serious stance on violations. With hefty fines and penalties added with reputational damage, it would only make sense to have proper controls to avoid being caught non-compliant.

It was always important to manage compliance, but it is much more important now than it was before. A compliance management solution allows managers to have a holistic view of the compliance efforts throughout the organization. Instead of finding out about compliance violations once an external audit happens and fines are levied, managers see violations as they happen and can quickly fix things. The energy industry needs to take a better approach towards compliance management, and automation based compliance management solutions will help them achieve that.

Preparing for the future

Whenever there is a major shift in the way we conduct business, the companies that are prepared for the change end up succeeding. Simply look at the rise of information technology and you will see hundreds of examples. Multi-billion-dollar organizations suddenly became uncompetitive and were left behind by smaller companies that embraced the new way of doing business.

If you want your organization to succeed in the new environment of the energy industry, the smartest move is to focus on compliance and regulatory change right now. If you want to see how organizations in the energy sector can benefit from our solutions, get in touch with us and we will arrange a live demo for you. If you want to test out the system yourself and see if it is a good fit for your organization you can register for a 30-day free trial of Predict360.

About the company

360factors, Inc. (Austin, TX) helps companies improve business performance by reducing risk and ensuring compliance. Predict360, its flagship software product, vertically integrates regulations and requirements, policies and procedures management, risks and controls, audit management and inspections, and on-line training and qualifications, in a single cloud-based platform based on artificial intelligence.

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