Objectives For Regulatory Impact Analysis

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Decision makers always face several kinds of pressure, most importantly the pressure of what the decision will result in. They have to take care of compliance issues and keep an eye on the rules and regulations as well while making sure that the decision does not trigger negativity.

Several governments have defined four chief objectives that act in response to the pressures the governments face. They include:

Improve the Understanding of Impacts of Action

The main objective of RIA is to understand the real-world impact of the decision, including both the cost and the benefits of the decision. Many countries tend to use an empirical approach due to concerns about efficiency.

Decisions are not only taken based on how beneficial they will be, but the cost associated is also paid attention to. Gone are the days when nations would take decisions looking at one factor only. They now use a different approach for better results.

RIA can tell governments about every detail of a decision. For example: the ‘‘Locally Adapted Regulatory Impact Analysis’’ process used by the Norwegian State Pollution Control Authority weighs all regulatory options to tackle a problem.

Integrate Numerous Policy Objectives

The decision making procedure is becoming complex day by day. Regulators face the huge challenge of integrating numerous policies that may affect one another. In order to perform their jobs better regulators should not only know their own objectives but also of other effects, including those on trade, environment and equity.

Experts recommend understanding policy links and to manage policy trade-offs in a better way. Regulatory Impact Analysis can also be used as an integrating framework to expose linkages among policies so that decision makers can weigh trade-offs properly.

This quality makes RIA a coordination tool as well. RIA is being used to evaluate a broad range of regulatory impacts across policy areas.

Improve Transparency and Consultation

Many countries now believe in participative and open decision making. Governments these days are using different methods to allow concerned groups wider access to the processes so that transparency and responsiveness are maintained.

RIA shows the impacts of decisions and is often closely linked to procedures of public consultation. Consultation is often made around RIA documents that tell the effects and goals of proposed changes.

Improve Government Accountability

RIA can perk up the participation and accountability of decision-makers by the reporting of wide information and representing how decisions help the public.

The priority placed on improved regulatory analysis in the US reflects a strong faith that regulators would not truly be held answerable to the electorate until the results of their actions were known.

Many RIA programs are intended to enable decision makers to comprehend and take accountability for regulatory judgments.

These are some of the main objectives of an RIA program. In simple words, the main aim is to make decisions that benefit society. RIA helps governments understand the impact of a decision from all perspectives making it easier for them to make the right call.

Further reading: Corporate Governance | Audit | Performance Improvement

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