Riskbased strategies Regulator has collected Risk assessment is relevant data to inform a consistently applied across Riskbased strategies can improve riskbased approach to all activities. regulatory outcomes by more regulation, and to evaluate Knowledge of risk informs strategically focusing on activities outcomes. inspection targeting. where the risks are the greatest. Regulator has an established Enforcement approaches that are Risk assessment processes approach to risk assessment. not targeted at or proportionate to and methodologies are risk may be too onerous on Requests for data from transparent. compliant businesses and result in regulated parties are Resources are concentrated insufficient enforcement activity proportionate to risk. in areas of greatest risk to being focused on high-risk Riskbased approaches to the achievement of businesses. Failure to apply compliance and enforcement outcomes. riskbased regulation may result in are considered and adopted inappropriate priority setting and where appropriate (for inefficient allocation of scarce example, regulator tailors resources. sanctions so that they are proportionate and meaningful). Compliance related assistance Regulator provides Assistance and advice and advice assistance and advice in services the full range of order to secure compliance. regulated activities and are Effective assistance and advice tailored where appropriate to Advice is: easily available (for reduces the risk of noncompliance. different groupings of example, accessible in Poor or inaccessible advice may regulated parties. appropriate formats); increase the time by regulated accurate; easy to understand parties to understand regulatory (i.e. written in plain English); requirements. Regulated parties comprehensive (e.g. include should be able to access advice illustrative examples); timely without fear of enforcement action. (e.g. provided in time for individuals and businesses to adjust to changes in regulation); and, regularly reviewed and updated in light of feedback. Administration and enforcement is accompanied by ongoing advice. Regulator judges the effectiveness of its assistance and advice by monitoring regulated parties’ awareness and understanding of the services. Regulator provides clarity about the status and objectives of advice (i.e. whether it is statutory or nonstatutory). Recommended element of good regulatory practice Incentive-based regulation is an extension beyond risk-based regulation, and requires an understanding of regulated entities’ behaviour and motivations. Developing this understanding can take time.
Riskbased strategies Riskbased strategies can improve regulatory outcomes by more strategically focusing on activities where the risks are the greatest. Enforcement approaches that are not targeted at or proportionate to risk may be too onerous on compliant businesses and result in insufficient enforcement activity being focused on high-risk businesses. Failure to apply riskbased regulation may result in inappropriate priority setting and inefficient allocation of scarce resources. Regulator has collected relevant data to inform a riskbased approach to regulation, and to evaluate outcomes. Regulator has an established approach to risk assessment. Requests for data from regulated parties are proportionate to risk. Riskbased approaches to compliance and enforcement are considered and adopted where appropriate (for example, regulator tailors sanctions so that they are proportionate and meaningful). Risk assessment is consistently applied across all activities. Knowledge of risk informs inspection targeting. Risk assessment processes and methodologies are transparent. Resources are concentrated in areas of greatest risk to the achievement of outcomes. Compliance related assistance and advice Effective assistance and advice reduces the risk of noncompliance. Poor or inaccessible advice may increase the time by regulated parties to understand regulatory requirements. Regulated parties should be able to access advice without fear of enforcement action. Regulator provides assistance and advice in order to secure compliance. Advice is: easily available (for example, accessible in appropriate formats); accurate; easy to understand (i.e. written in plain English); comprehensive (e.g. include illustrative examples); timely (e.g. provided in time for individuals and businesses to adjust to changes in regulation); and, regularly reviewed and updated in light of feedback. Administration and enforcement is accompanied by ongoing advice. Regulator judges the effectiveness of its assistance and advice by monitoring regulated parties’ awareness and understanding of the services. Regulator provides clarity about the status and objectives of advice (i.e. whether it is statutory or nonstatutory). Assistance and advice services the full range of regulated activities and are tailored where appropriate to different groupings of regulated parties. Recommended element of good regulatory practice Incentive-based regulation is an extension beyond risk-based regulation, and requires an understanding of regulated entities’ behaviour and motivations. Developing this understanding can take time.
Statement%20of%20Expectations%20Framework%20for%20Regulators%20August%202017.docx