Regulatory failures occur when government agencies or regulatory bodies do not effectively enforce laws or guidelines designed to protect public interests. This can lead to negative outcomes, such as environmental damage, financial crises, or public health risks. For example, inadequate oversight of the financial industry can result in practices that harm consumers and destabilize the economy. These failures often stem from a lack of resources, insufficient expertise, or conflicts of interest within regulatory agencies. When regulations are poorly designed or not enforced, it can create an environment where companies prioritize profit over safety, leading to incidents that could have been prevented with proper oversight.