We expect governments to protect citizens from the adverse consequences of hazardous
events. At the same time it is not possible or necessarily in the best interest of
citizens for all risks to be removed. A risk-based approach to the design and implementation
of regulation can help to ensure that regulatory approaches are efficient, effective
and account for risk/risk tradeoffs across policy objectives. Risk-based approaches
to the design of regulation and compliance strategies can improve the welfare of citizens
by providing better protection, more efficient government services and reduced costs
for business. Across the OECD there is great potential to improve the operation of
risk policy as few governments have taken steps to develop a coherent risk governance
policy for managing regulation. This publication presents recent OECD research and
analysis on risk and regulatory policy. The chapters discuss core challenges today.
They offer measures for developing, or improving, coherent risk governance policies.
Topics include: challenges in designing regulatory policy frameworks to manage risks;
different cultural and legal dimensions of risk regulatory concepts across OECD; analytical
models and principles for decision making in uncertain situations; key elements of
risk regulation and governance institutions; the use of management-based regulation
to help firms make risk-related behavioural changes; an analysis of the risk-based
frameworks of regulators in five OECD countries (Australia, Ireland, Netherlands,
Portugal, United Kingdom) and across four sectors: environment, food safety, financial
markets and health and safety; and the elements for designing formal guidelines for
risk prioritisation, assessment, management and communication.