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Risk and Regulatory Policy

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Benefits of a risk based approach. Problems with risk assessment. Conclusions. Further work ... critical to effective governance processes. Risk communication ... – PowerPoint PPT presentation

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Title: Risk and Regulatory Policy


1
Risk and Regulatory Policy
  • How do systems of regulatory governance reduce
    societal risk?
  • Greg Bounds, Administrator
  • Regulatory Policy Division

2
Introduction - outline
  • Elements of risk policy
  • Why use risk assessment?
  • Benefits of a risk based approach
  • Problems with risk assessment
  • Conclusions
  • Further work

3
Elements of risk policy
  • Risk assessment
  • framing and forecasting
  • Risk management action and remedies
  • avoidance, reduction, retention, transfer
  • Risk review
  • critical to effective governance processes
  • Risk communication and consultation
  • creating transparency

4
Why use risk assessment?
  • Allocation of scarce resources
  • Improving welfare in a zero sum game
  • Costs of the irregular treatment of risk
  • Failure to set priorities
  • Over regulating
  • Unequal treatment
  • Trade barriers
  • Sources of policy problems
  • Interrelated nature of risks
  • Risk and the policy cycle
  • Timing of risk assessment
  • Subjective perceptions of risk
  • Communication with the public

5
Benefits of a risk based approach
  • More efficient regulatory agencies
  • Allocate limited resources to highest risk
  • Accountability and performance
  • Decision processes reveal sources of success and
    failure
  • More responsible societies
  • Manage risks at the most effective level of
    society

6
Problems with risk assessment
  • Data availability
  • Costly, time consuming and rare.
  • Public criticism
  • Technical complexity
  • Spurious accuracy
  • Failure in the authorising environment
  • Legislative authority and political will
  • Timing and co-ordination issues
  • Ex post evaluation

7
Conclusion
  • Risk assessment can assist in overcoming
    regulatory tensions
  • Institutional and practical arrangements
  • Political authority gatekeeper role
  • Guidance and support
  • Monitoring and review arrangements
  • Government responses to broader risks
  • Lessons from the Canadian proposal

8
Further work
  • Workshop is timely
  • OECD interest in how Governments are extending
    risk policy tools?
  • Role of different agents
  • Co-ordination by centralised decision makers
  • Legislative directives
  • Role of the media
  • Obstacles to reform lessons from other areas
  • Case studies
  • Development of guidance material
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