The series captures the experience, innovative approaches and solutions for development of the World Bank Group covering financial sector topics of relevance to both the public and private sectors. The series is comprised of short knowledge notes, policy notes, case studies, lessons learned or a combination therein. This series was formerly known as Finance in Focus.
(World Bank, Washington, DC, 2020-10-22) Molfetas, Aris; Grava, Lars
Governments increasingly use risk-based
regulation (RBR) to adapt their degree of regulatory control
to the actual risks posed by industry sectors, economic
activities, and business establishments. Risk-based
regulation aims to protect public goods, such as safety,
health, and the environment, while at the same time avoiding
unnecessary burdens on businesses. When designing regulation
and developing models for monitoring and enforcement, risk
guides assessments of costs and benefits. This note presents
reformers and practitioners with the highlights of an
approach to implementing a risk-based regulation system.