NSoft and Regulatory ChallengesStories | 28 Jan 2019
Regulatory requirements strengthening the company’s know-how
In today’s business, the companies are being increasingly challenged with efforts to reach all set financial targets, and at the same time to comply with complex regulatory requirements.
Gambling regulation is one of the most demanding areas for regulation in every legal system. If this fact is complemented by the fact that NSoft operates in over 35 countries (35 different legal systems) then it’s easily understandable that NSoft’s high regulatory challenges require continuous dedication.
However, with its expertise, NSoft is absolutely serious market player, playing a demanding regulatory “match” as well as complying with standards that regulators place in front of both, the company and its clients. Through the prism of NSoft, this match is to be perceived from two angles. The first one is where NSoft directly applies regulations in its field of activity, and the second one is when NSoft provides professional and advisory support to its clients. In both cases there is absolute commitment to comply with all regulatory standards in ensuring high quality business.
Dealing with the legal and regulatory risk
As said in the introduction, the regulatory requirements are becoming more and more complex, the intention is to regulate the market as much as possible. The special challenge are the growing sanctions for breach of the regulatory standards, which can expose each company both, financially and reputationally.
The question of how to deal with all of these challenges becomes legit. Many would say that it is enough to only know the rules and apply them consistently. However, NSoft approaches those problems much more comprehensively. Knowledge of regulations is something that is mandatory. Nevertheless, one should be aware that today’s regulations are so often ambiguous, leaving room for more interpretations and thus creating disagreements in deciding how to apply certain regulation and consequently leading to legal insecurity. In such situations it is not only crucial to know the regulation, but to manage legal and regulatory risk.
There is no uniform definition of these risks, but it is evident that the unexpected interpretation of the law or legal uncertainty could lead to financial, reputational or other damage for the company. This practically means that it is necessary to assess the risk, manage it, but in a way that does not cause any loss to the company or client, and that such a solution provides the basis for achieving previously agreed business objectives. Having this approach, in such an uncertain regulatory environment, allows us to provide additional security to our customers as we perceive these situations as a common challenge. New regulatory frameworks or modifications of the existent ones are approached from the aspect of rationality that is directly related to the aforementioned risk assessment.
This particularly implies on:
- establishing the sequence of activities of all participants
- defining the places and ways for cooperation and coordination of activities of different participants
- defining and managing tasks, both individual and team tasks
SEE region expecting changes to legal acts
If we take as an example the regulatory framework of the countries that geographically belong to South East Europe, then one basic common characteristics is easily identified – the need for a continuous improvement of improper legal solutions, completion of the process of harmonization with EU standards for non EU member states such as BiH, Serbia and Montenegro. Over the next period, from the aspect of regulation, both for clients and NSoft, the challenge will be to monitor the announced changes to legal acts within the gaming industry.
NSoft wants to be an active participant, whenever possible and when the procedures permit, in creation of regulations, making suggestions and objections, all with the aim of creating a better regulatory framework. We are aware that social responsibility in this segment is extremely important. As a company we are absolutely qualified for this kind of contribution to the community.