Risk Management in Regulatory Frameworks
Risk management is a discipline firmly rooted in organizational management, and particularly in business management. Regulations are often addressed to business operators, which need to implement them through their managerial structures.
Risk management provides tools for structured thinking about the future and for dealing with the associated uncertainty. Implementing risk management in an organization, or in a regulatory authority, gives decision makers tools that enable rational choices, taken on the basis of the information available, no matter how limited it may be.The work of UNECE in the area of Risk Management aims at developing guidance and best practice on how regulatory authorities can establish regulatory frameworks which effectively manage the risks that confront consumers, citizens and communities.
Specifically, the group works on the following priorities:
The work is carried out by the Group of Experts on Risk Management in Regulatory Systems (UNECE GRM), a unique, high-level and international partnership in the field of risk management.
The group is quite diverse. Experts participate from 13 countries - from Canada to New Zealand. They bring perspectives from authorities, standards-setting organizations, conformity assessment bodies, universities and research institutions as well as business companies.
The Group is chaired by Mr. Kevin Knight (Australia) with Mr. Donald Macrae (U.K.) and Mr. Valentin Nikonov (Russian Federation) as its coordinators.
Monthly webinars and electronic data exchanges are the major forms of communication among GRM members. Reports of the webinar are made available two weeks after the meeting.
In 2011, UNECE approved and published two recommendations developed by the Group:
- A general recommendation on the use of risk management tools in regulatory systems - “Managing Risk in Regulatory Frameworks” (Recommendation “R”: ENG FRE RUS);
- A more specific recommendation, which describes one of the functions of the risk management process, “Crisis Management within a Regulatory Framework” (Recommendation “P”: ENG FRE RUS);
In 2012, the GRM published a book "Risk Management in Regulatory Frameworks";
- Participated in the preparation of the draft-OECD Recommendation on Regulatory policy and Governance;
- Participates in the work of the ISO TC Committee setting forth guidelines for the implementation of ISO 31000:2009.