Risk assessment: information sharing
Assessment of the value derived from information sharing about risk between regulators.
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One of the main potential benefits of a common approach to risk assessment is that it assists information sharing between regulators. This allows their activities to be targeted more accurately, on the basis of where risks are greatest. However, the value derived from information sharing depends to a large degree on the extent to which the level of compliance in one regulated area is indicative of compliance in other areas. For example, if a business is well (or badly) managed for food hygiene, is it also likely to be well (or badly) managed for fire safety, health and safety, pollution prevention and control, etc.?
BRDO commissioned research to examine this issue, and to provide an evidence-base to inform decisions on how best to further develop business risk assessment and information sharing between regulators.
The reports produced were:
- a literature review of previous, relevant work
- an assessment of correlations in management performance against different areas of regulation, on the basis of risk rating schemes
- an examination of business thinking on the adoption of consistent or variable approaches to compliance across different areas of regulation
- an exploration of how the sharing of risk rating data between regulators might help targeting where there is a risk of a major failing on the part of the business
The above publication provides a summary of all 4 of these reports and the last of them – on data sharing – in its entirety.
The other 3 reports – on existing literature, correlations and business thinking – are available on request: [email protected]
