Recently, Dr Annika Galle, assistant professor of Financial Law at Erasmus School of Law, was interviewed by Consignium about her vision on regulation and practice. The quality of legislation and regulations has intrigued Dr Galle since the beginning of her career. She sees opportunities to align practice and regulations better. However, rule-makers must customise their work.
In the interview, Dr Galle points out the increasing regulation and supervision in the modern world. In principle, she believes this is not a bad thing, but this increasing regulation must be well thought out and substantiated. In the past, people thought of rules without considering the consequences in the real world. Fortunately, regulations are now being developed with a clear purpose. According to Dr Galle, two aspects are important when drafting new rules: they must be practical and future-proof.
In the world of Corporate Governance, an area in which Dr Galle obtained her doctorate; there are many principal-based regulations. These regulations take one or more basic principles as a starting point. A good thing, according to Dr Galle. The significant advantage is the customisation for a person or company that these regulations offer. Regulators must continuously strive to offer customisation ("made to measure"). In addition, it remains crucial that rules are not made just like that: "What we have to watch out for is over-regulation and regulation based on purely political motivations. Since in principle regulations never decrease, but always increase, it is important to always look critically at why you would want certain rules", says Dr Galle.
Consignium is a company focused on risk management. That is why Dr Galle also reflected her vision on this aspect of business management. Rules aimed at risk management must also be tailor-made. It makes no sense to be too concerned about risks that you have not been able to foresee ('black swans'). Dr Galle: "You can try preventing everything, but then you won't get any further. Ultimately, doing business is taking calculated risks. Because risk management is managing the calculated risks that you take."
- More information
The entire interview can be read here (Dutch).
