Learn how to understand the rules, communicate clearly, build trust, manage expectations, handle challenges, and maintain relationships with regulators in your industry.

Making their job easier is always a big bonus. I was conducting an investigation, and the information was so voluminous, and complex, that I put together a binder with all of our work, and all of the key evidence linking it all together. This went a long way, in having the regulator understand our position.

How can you confidently manage relationships with regulators?

If you work in a regulated industry, such as finance, health, or energy, you know how important it is to maintain good relationships with the regulators who oversee your compliance and performance. However, you may also feel intimidated, frustrated, or overwhelmed by the demands and expectations of the regulators, especially if they are frequent, complex, or unclear. How can you confidently manage relationships with regulators and avoid unnecessary stress, conflict, or penalties? Here are some tips to help you.

1 Understand the rules

The first step to managing relationships with regulators is to understand the rules and regulations that apply to your industry, sector, and organization. This means keeping up to date with the changes, clarifications, and interpretations of the rules, as well as the best practices and standards that the regulators expect. You can do this by reading the official publications, attending the relevant workshops or webinars, and subscribing to the relevant newsletters or alerts from the regulators. You can also consult with your legal, compliance, or risk management teams to clarify any doubts or questions you have about the rules.

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Jonathan T. M.
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1. Constructive Engagement: Always interact positively with regulators. 2. Stay Informed: Keep up-to-date on regulatory changes. 3. Strategic Planning: Develop plans for regulatory interactions. 4. Whistleblower Programs: Encourage a culture of openness. 5. Compliance Systems: Implement thorough systems. 6. Proactive Approach: Address potential risks immediately. 7. Collaboration: Work with regulators during audits and inspections, like DOJ audits on grant recipients. 8. Transparency: Disclose business activities fully to authorities. 9. Training: Regularly train staff on regulatory requirements. 10. Documentation: Keep detailed records. The aim is to manage, not eliminate, shortcomings to avoid significant investigations.

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2 Communicate clearly

The second step to managing relationships with regulators is to communicate clearly and respectfully with them. This means being honest, transparent, and cooperative in your interactions, whether they are formal or informal, written or verbal, proactive or reactive. You should always provide accurate, complete, and timely information to the regulators, as well as respond to their requests, queries, or feedback promptly and politely. You should also use clear, concise, and consistent language and terminology, as well as avoid jargon, slang, or ambiguity. If you have any concerns, issues, or suggestions, you should express them constructively and diplomatically, as well as offer solutions or alternatives.

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Emily Frenkel

Innovative Problem Solver Driving Growth | Digital Marketing Manager | Strategic Partnerships | Data Analytics | Paid Media | Achieved consistent 20x ROAS for luxury goods brand | #CODA #TechJunkie. Let's talk!
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Regulators appreciate when you come to the table prepared for the conversation you’ll have with them. Be resourceful and research what you can before asking for their time. You may wind up getting the same articles that you could’ve found on your own after taking the time to contact them. Remember that they are also doing as much as they can to help you.

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Dr. David P. Weber

Fraud and Forensic Accounting / Professor of the Practice / Expert Witness
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Regulated entities should communicate with their examiner-in-charge frequently, and not wait until bad news is public to inform the regulator. Rather, building trust must include informing the supervisory agency of bad news long before the news becomes public. In addition, even if not restricted in offering new business or services, it is always a good idea to inform the regulatory agency of the entity's intention to move into a new business, product or service. Pro tip: FinTech partnerships between banks and unregulated entities is currently under great regulatory scrutiny. Do not wait to inform your regulator of an intention to partner with a FinTech.

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3 Build trust

The third step to managing relationships with regulators is to build trust and rapport with them. This means showing that you are reliable, accountable, and professional in your conduct and performance, as well as that you value and respect their role and authority. You can do this by delivering on your commitments, complying with the rules, and demonstrating your competence and quality. You can also do this by acknowledging their expertise, experience, and perspective, as well as seeking their input, feedback, or guidance. You should also try to establish a personal connection with the regulators, by learning their names, preferences, and interests, as well as sharing some of your own.

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Emily Frenkel

Innovative Problem Solver Driving Growth | Digital Marketing Manager | Strategic Partnerships | Data Analytics | Paid Media | Achieved consistent 20x ROAS for luxury goods brand | #CODA #TechJunkie. Let's talk!
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The regulators are human beings too. Like anyone else, they want to feel appreciated. If you can do that by genuinely wanting to get to know them, do so. Always be sure to show appreciation for their time and contributions, especially when they have successfully helped.

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4 Manage expectations

The fourth step to managing relationships with regulators is to manage expectations and boundaries with them. This means being realistic, reasonable, and flexible in your expectations of what the regulators can and cannot do, as well as what they expect from you. You should also be clear, assertive, and respectful in setting and communicating your boundaries, such as your availability, resources, or priorities. You should also negotiate and agree on the scope, frequency, and format of your interactions, as well as the roles, responsibilities, and deliverables of each party. You should also monitor and review the progress and outcomes of your interactions, as well as provide and receive feedback.

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5 Handle challenges

The fifth step to managing relationships with regulators is to handle challenges and difficulties with them. This means being prepared, calm, and confident in dealing with any potential or actual problems, such as misunderstandings, disagreements, or disputes. You should also be proactive, positive, and solution-oriented in resolving any conflicts, complaints, or concerns, as well as seek to learn from any mistakes, failures, or feedback. You should also be respectful, empathetic, and supportive in handling any emotions, stress, or pressure, as well as acknowledge and appreciate any efforts, achievements, or improvements.

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6 Maintain relationships

The sixth and final step to managing relationships with regulators is to maintain and nurture them. This means being consistent, responsive, and courteous in your interactions, as well as following up and following through on your agreements, actions, or feedback. You should also be attentive, appreciative, and generous in your recognition, gratitude, or compliments, as well as celebrate and share any successes, milestones, or achievements. You should also be open, curious, and collaborative in your learning, development, or innovation, as well as seek and offer any opportunities, resources, or support.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Jonathan T. M.
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Making their job easier is always a big bonus. I was conducting an investigation, and the information was so voluminous, and complex, that I put together a binder with all of our work, and all of the key evidence linking it all together. This went a long way, in having the regulator understand our position.

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Dr. David P. Weber

Fraud and Forensic Accounting / Professor of the Practice / Expert Witness
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Some of the best cases we brought at the FDIC and OCC was from stories we read in the Wall Street Journal or American Banker. Don't be that entity that makes the regulator read it in the newspaper first. You should be proactively manging the regulatory relationship, including delivering the bad news far before it becomes public.

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How can you confidently manage relationships with regulators?

1

2

3

4

5

6

7

1 Understand the rules

2 Communicate clearly

3 Build trust

4 Manage expectations

5 Handle challenges

6 Maintain relationships

7 Here’s what else to consider

Interpersonal Skills

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How can you confidently manage relationships with regulators?

1

2

3

4

5

6

7

1 Understand the rules

2 Communicate clearly

3 Build trust

4 Manage expectations

5 Handle challenges

6 Maintain relationships

7 Here’s what else to consider

Interpersonal Skills

Rate this article

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