Risk-based regulation- What is the risk-based code?

 Risk-based regulation: what it is and why it matters?

The Code is a key tool for governments to achieve public policy goals, such as ensuring environmental protection, public health and safety ، Promoting fair competition, and increasing social well-being. However, the code also comes with costs and challenges, such as burdening businesses and consumers, and creating unannounced results.

 And proper resources and capabilities are needed for implementation and implementation. How can governments design and provide regulation in a way that maximizes its benefits and minimizes its costs? A possible response is a risk-based code.

 What is the risk-based code?

Risk-based regulation is an approach that focuses on the results of the regulation rather than specific principles and practices. For this, regulators are required to identify, evaluate, assess, and identify risks associated with various regular activities using purpose and data-driven methods ، Prefer and manage them. Regulators have also been asked to choose the most appropriate and proportionate regulatory tools and strategies to address threats ، Considering the costs and benefits of different options.

The risk-based code is not all the solution that fits the same size. This can be applied to different stages of the regulatory policy cycle, such as agenda setting, policy design, implementation, implementation, evaluation, and review.

It can also be applied to various regulatory domains, such as environmental protection, consumer protection, financial stability, occupational health and safety, etc. However, risk-based regulations do not mean that all risks should be regularized or eliminated. Rather, it shows that regulators should make informed and transparent decisions about how they are at risk of regularizing and managing them.

 Why is the importance of risk-based regulation?

There are risk-based regulations as they can help improve the effectiveness and efficiency of the regulation. Using risk analysis and evidence-based decision-making ، Regulators can better understand the nature and extent of the risks they face, as well as the potential impact of various regulatory powers. This can help them better allocate their resources as much as possible and more clearly target their interventions. Using risk ratio and results orientation, regulators can also reduce unnecessary or excessive regulatory burdens on businesses and consumers ، While ensuring that the required public results are achieved.

 Risk-based regulation also makes a difference as it can help increase the legitimacy and accountability of the Code. By using risk transparency and stakeholder involvement.

Regulators can communicate more clearly about the rationale and objectives of their regulatory measures, as well as trade relations and uncertainty. This can help build trust and trust between the public and regulated institutions, as well as promote a culture of compliance and cooperation.

 How to enforce risk-based regulations?

Implementation of risk-based regulations requires not only technical competence but also principle decision-making 1. Regulators need to choose what decision-making rules apply when evaluating and managing Risk 2.

For example, they can adopt a precautionary principle when dealing with uncertain or irreversible hazards۔ The principle of cost-benefit when dealing with price-worthy or comparable hazards; or the principle of justice when dealing with distribution or moral hazards.

 Organizational capacity and cultural change 1 are also needed to implement risk-based regulations. Regulators need to have appropriate tools and resources to conduct strict risk analysis and data collection۔ They need to have clear roles and responsibilities to coordinate their initiatives at different levels and sectors; They need to have flexible and adaptive mechanisms to respond to changing situations۔ And to monitor and evaluate their performance, they need to have a learning mindset.

 Implementing risk-based regulations is not an easy task. It faces many obstacles and challenges, such as institutional resistance, public pressure, path-based dependence, lack of data or skills, etc. However, this is also an essential task for regulators who wish to get regulatory excellence 2.

Risk-based regulation is not just a technical enterprise۔ It is also standard and strategic. This requires not only analytical skills but also moral values۔ Not only experimental evidence but also stakeholder participation۔ Not only scientific knowledge but also practical wisdom.