The Latest on Developments in Best Practice Regulations
Based on expert analysis on business firms implementing best practices certain issues have been identified. These are considered by investors and executives as important best practices with determine the infrastructure of emerging markets.
According to Stanford Berg (Director, Public Utility Research Center, Warrington College of Business, University of Florida) there are nine best practices which must be emphasized upon. These include:
- Communication: Information must be transmitted to stakeholders on regular basis. It must be easily accessible and clear.
- Consultation: Stakeholders must participate in meeting.
- Consistency: There must be consistency with participants in the market and over time.
- Predictability: The business firm must have a reputation that aids suppliers and customers in planning for the future.
- Flexibility: Business firms must show flexibility by using appropriate tools and strategies in response to changing conditions.
- Independence: There must be autonomy, with no political restraints.
- Effectiveness and Efficiency: There must be cost-effective data collection and policies.
- Accountability: The business owners and stakeholders must comply with clearly defined processes and have the rationales for decisions, with appeals.
- Transparency: There must be transparency and honesty about the processes involved.
As problems with these best practices are identified there must be measures taken in order to improve. According to Stanford Berg, there are five elements which can be used to assess the performance of financial or business institutions. These are;
- Advancement in productivity: There must be cost effective processes and adoption of new technologies and processes to ensure best practices.
- Introduction of new services or products: An addition in the services and products a business offers is a sign of compliance with best practices. Similarly if services or products offered reduce, it is an indication of failure in compliance with best practices.
- Returns from investments of investors must be proportional
- Prices of products and services must have minimal incremental cost as a sign of stability.
- There must be expansion of basic services for specific customers and groups.
Another key indicator for analysis of performance is sector performance. This means best practices focused on compliance with principles and procedures. Performance can be analyzed based on the following:
- Regulatory Governance and Performance
- Balancing the interest of Key stakeholders
- Transparency and participation
- Consultation and alternative dispute resolution
Based on these observations, recently there have been major developments in best practice regulations. These have become essential key points for success. As awareness increases, financial institutions will continue to overcome any major setback with ensuring compliance with best practices.