The Regulatory Sector: Critical to the Functioning of the Economy

The regulatory sector is very critical in enhancing the welfare of the citizens in a country. Ensuring the safety of the public has been an essential objective of the government. The government and other tribunals enhanced traditional regulatory practices. Regulatory decisions have huge impacts on the consultancy with private business entities. The regulatory body cannot provide some essential services offered through the regulators due to lack of enough capacity. There is stiff competition among the players in the private sector characterized by the reputation of brands, among other factors. Private organizations are involved in self-regulation. They are required to ensure that their members adhere to the various regulations outlined by the regulatory authority. Several entities tend to conceal their vulnerability information to avoid damaging their reputations and also evade regulatory impacts. The regulatory body loses the ability to implement their regulations with instructors the repercussions of mounting confrontations against an entity (Bernards, 2013). The regulator requires to have essential information on the operations of the industries and the various domains affected by the regulations. They also need to possess skills that enable them to conduct inspections on the different regulations. Awareness about the operations of an industry and the various domains allow the regulator to avoid falling into accepting options that are based purely at the interests of the organization. Having this knowledge also facilitates the process of offering guidance to the industries. Some of the challenges include the loss of awareness of the vulnerabilities inherent in the country (Bernards, 2013). This poses challenges of regulations enforcement. Another problem is the ability to make oversight consistent while preserving the legitimacy and appropriateness of competition. Coercion in the regulatory sector is hindered by lacking proper infrastructure by the regulatory authority. When the public sector becomes more coercive, the private sector is unable to cooperate with the regulations. 

References 

Bernardes, W., 2013.  Critical Infrastructure . Hauppauge: Nova Science Publishers, Inc.