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There is the need for establishing a Regulation Impact Statement (RIS) in every business organization. These are a set of regulations which are necessary for best practices in the organization. This is why it is recommended that managers and CEOs know the requirements for a RIS.

Requirements for a RIS

CEOs and managers must ensure the following steps before preparing the ideal Regulation Impact Statement. These will ensure best practices with the RIS.

1. Identify and analyze the problems which need attention.
2. Evaluate the need for corrective actions.
3. Examine the complied regulations.
4. Consult with the stakeholders about who will be affected by the implementation of the RIS.
5. Analyze the impact the RIS will have on the stakeholders.
6. Estimate the regulatory cost imposed on the business upon imposing the RIS.

Once these have been considered and the requirements are satisfactory, the next thing to be done is preparing the RIS. Before you can go ahead, you must analyze the purpose of the RIS for your organization. There are two purposes of a RIS:

• It allows decision makers to have access to all available information to ensure best practices.
• It informs involved personnel about the likely impact the information and proposal will have on the best practices.

There is no fixed limit for the length of the RIS as long as it serves the requirements for best practices. It is a document which stands alone. Therefore you can as well design a preliminary RIS Assessment Form before proceeding with making a RIS. This will help in evaluating the RIS required for ensuring best practices.

Other means you can consider for preparing the ideal RIS include:

• Use of consultants: Consultants can analyze highly complex issues within the agency. They can evaluate the technical skills required to ensure best practices. However, even though using a consultant increases the quality of analysis in RIS, it reduces the options available. Additionally, the RIS remains the organization’s responsibility and not of the consultant. There will be risks and therefore there will be need for best practices while using consultants.
• Self Assess the Problems: One must address and describe the problems which have led to the need for an RIS. If it is a government action, you will need to provide information to identify the government actions which led to the RIS. This will help in evaluating the problems and the government requirements. These will help in establishing best practices which must be implemented to ensure an effective RIS for the organization.

Therefore, conclusively, a Regulatory Impact Statement (RIS) for best practices is an important requirement for all health, business and financial organizations.

Further reading: Corporate Governance | Audit | Performance Improvement