When risk-based regulation aims low: A strategic framework
Article first published online: 22 FEB 2012
© 2012 Blackwell Publishing Asia Pty Ltd
Regulation & Governance
Volume 6, Issue 2, pages 131–148, June 2012
How to Cite
Black, J. and Baldwin, R. (2012), When risk-based regulation aims low: A strategic framework. Regulation & Governance, 6: 131–148. doi: 10.1111/j.1748-5991.2012.01127.x
- Issue published online: 4 JUN 2012
- Article first published online: 22 FEB 2012
- Accepted for publication 29 December 2011.
- low risks;
This article develops a strategic framework for regulators to employ when choosing intervention strategies for dealing with low risks and reviewing performance, building on the analysis by the same authors in the previous edition of this journal. The framework occupies the operational “middle ground” between risk analysis and formal enforcement action. At its core is a matrix, the Good Regulatory Intervention Design (GRID), which provides a framework to categorize sites or activities on the basis of two factors: the nature of the risk and the nature of the regulatee. Using GRID, regulators can select which intervention tools to use, and determine the overall level of regulatory intensity that should apply. GRID is accompanied by the Good Regulatory Assessment Framework (GRAF) for agencies to use in reviewing their performance and provides a step-by-step process for enabling “double loop learning.” The article also argues that the process of developing such a framework highlighted the extent to which “low risk” and “high risk” regulation are distinct. “Low risk” means “low priority.” Justifying why certain risks should not receive much regulatory attention requires a particular type of engagement, and has a bearing on the regulatory strategies that are adopted.