When a firm denies that there is a problem and waits for regulatory pressures before it will change its behavior, what type of strategy is the firm using?

reactive strategy

Explanation:

Based on the information provided within the question it can be said that the type of strategy that the firm is using is a reactive strategy. This business strategy relies on waiting until a certain event occurs before actually responding to it. Which is the case in this situation since they are putting off dealing with a known problem until regulatory pressures actually arrives.