The Calm Advantage: Why Regulatory Intelligence is the New Leadership Skill
In a world of shifting rules, calm leaders turn regulatory awareness into a strategic advantage
By Suzie Thoraval
“It takes less time to do things right than to explain why you did it wrong.”
When I worked as in-house legal counsel, I often found myself in conversations where the commercial team wanted to “move fast” — sometimes faster than the rules allowed. A new product, a marketing claim, a contractual shortcut.
I’d remind them: “Every minute you spend under regulatory scrutiny is a minute not spent creating value.”
I wasn’t saying no - I was encouraging them to innovate with awareness. Because once regulators start asking questions, time, energy, and focus are diverted from innovation to damage control.
Even as the world seems to be speeding up, I still believe in that principle: good compliance protects momentum. It’s what keeps the machine running smoothly when external pressures rise.
Now, sitting on Audit and Risk Committees, I see that principle from a broader perspective. Around the governance table, the focus is on how systems, culture, and accountability evolve alongside ambition. When people understand the guardrails, they decide with confidence, not hesitation.
Still, I understand why many leaders feel weary. The volume of new of regulation — Enterprise Social Governance (ESG), Artificial Intelligence ethics, privacy, financial integrity — can feel suffocating when you’re trying to move fast and stay ahead. The argument that regulation kills agility is one I hear often.
Leading with foresight in a landscape of oversight
The Productivity Commission’s 2025 interim report, Creating a More Dynamic and Resilient Economy, noted that Australia’s regulatory system struggles to assess and manage the flow of new regulation and new rules. The result is a steady accumulation of regulatory burden which slows decisions, can reduce investment and diminish economic flexibility.
Commentators on governance have long observed that as societies and systems grow more complex, regulation tends to expand to match.
For today’s leaders, that reality demands a new kind of steadiness — the ability to navigate increasing oversight with calm, clarity, and intelligence.
Regulatory intelligence: part of adaptive stability
When regulatory awareness is built into decision-making — supported by systems that interpret change, automate routine work, and maintain open dialogue with regulators — it becomes a leadership strength.
Those with adaptive stability view regulation as a design boundary — a framework that sharpens focus and builds trust. Within those boundaries, creativity flourishes because people understand where they can safely experiment.
While regulatory intelligence has long been part of compliance practice, it’s now emerging as a vital leadership skill: the capacity to stay calm, informed, and forward-looking in a landscape of constant change.
Leaders don’t need to know every clause; they need to understand the intent behind the law — the values it protects and the risks it seeks to manage. That understanding builds confidence, strengthens judgment, and earns trust.
In my work with executives and boards, I’ve seen that thoughtful compliance strengthens an organisation’s core. Leaders who anticipate trends, translate change into action, and ask the right questions create calm momentum and signal reliability to those around them.
Regulatory intelligence is foresight in action — the steadiness that allows leaders to navigate complexity with clarity and composure.
When vigilance slips, so does credibility
Recent examples show that the cost of ignoring regulation erodes culture and reputation:
Westpac’s $1.3 billion fine in 2020 for anti–money-laundering breaches was the largest civil penalty in Australian corporate history at that time. It raised deep questions about oversight and ethics — the very foundations of trust.
Boeing’s 737 Max crisis, where airline crashes were linked to a new flight control feature, was made to pay $2.5 billion in penalties and compensation to settle criminal charges by the U.S. Department of Justice for concealing material information from regulators. It grounded fleets worldwide and damaged confidence in the brand for years.
AMP Limited, were found by the Banking Royal Commission to have charged clients fees for no service and misled the corporate regulator, ASIC 20 times over 7 years. As a result the CEO and some board directors resigned and AMP’s share price plummeted showing how a gap between culture and compliance can undo an organisation’s credibility.
These breakdowns rarely begin with intent. They begin with drift — a gradual loss of attention to small oversights that create a slow erosion of vigilance and accountability when “business as usual” takes precedence over doing what’s right. Often, in these cases, no one is asking, “Are we still aligned with what matters?”
Leadership begins with curiosity
Many leaders believe compliance is for the legal or risk teams and step back. The real opportunity lies in staying curious.
You don’t need to know every rule, but you do need to understand the terrain — to notice patterns, ask thoughtful questions, and model calm awareness. Staying informed shows respect for customers, communities, and the systems that allow your organisation to operate.
Building that literacy — through briefings, reading updates, or asking “What could this mean for us?” — sharpens foresight. It turns compliance into design thinking for leadership.
As Dr Martin Luther King Jr said, “The time is always right to do what is right.”
Six ways to strengthen regulatory intelligence
Here are six ideas on how you can develop your regulatory intelligence into your leadership practices:
1. Scan and Sense Early: Dedicate time each week to regulatory or industry updates. Small, regular attention prevents surprises later.
2. Translate Change into Clarity: Explain new requirements in plain language so teams can act with confidence and purpose.
3. Build a Culture of Integrity: A culture that values questions more than quick fixes will spot risk sooner. Recognise people who speak up.
4. Use Technology Wisely: AI tools can monitor transactions and flag anomalies, but human judgment still sets the standard.
5. Connect with Regulators and Peers: Engage consistently. Relationships built early make difficult conversations easier later.
6. Reflect, Review, Refine: Treat internal audits as opportunities for insight. Ask, What’s changed since our last review? What’s next on the horizon?
Questions to keep on your radar
The leaders who stay grounded bring regulatory awareness into everyday conversation. They ask:
What shifts in law or policy could influence this project?
Where do our risk controls feel stretched or outdated?
Who else needs to understand this risk?
Over time, these small habits build a culture where compliance is lived, not kept in the bottom drawer.
From static to strategic
Think of regulatory intelligence like maintaining a house: you don’t wait for a leak to check the gutters. Consistent attention keeps the structure sound and gives you freedom to focus on growth, innovation, and long-term impact.
When compliance becomes part of your leadership rhythm, it builds deep trust — within and beyond your organisation.
Ask yourself:
How do I demonstrate integrity and regulatory awareness in my leadership?
Where might our governance need more balance — tighter in some places, looser in others?
What early-warning systems help us spot issues before they escalate?
Final thoughts
Regulatory intelligence may sound technical, but it is about awareness, humility, and balance — the same qualities that help leaders stay composed when uncertainty arrives.
When you stay informed and curious about the forces shaping your environment, you reinforce your calm core. You send a signal — to boards, teams, and communities — that your organisation doesn’t just react to change; it anticipates it.
That’s the spirit of adaptive stability — foresight expressed through steadiness, confidence expressed through care, and progress built on integrity.
How could your next compliance conversation become a moment to reinforce trust, model foresight, and lead from a place of calm?
