CARR Launch Paper - October 2000 - ISBN 0 7530 1429 7
Is Regulation Right? - Robert Baldwin
Most of us think it proper to study regulation but it is harder to say how regulation can be carried out properly. Regulators, indeed, seem to be on a hiding to nothing - they are routinely savaged in the press, they are seldom informed that they have got it right and hardly ever told what a balanced or successful regime of regulation would like. It is accordingly worth pausing to consider why regulators have such a rough ride, whether they can ever get it right, what sort of future they can look forward to...
Business Risk Management in Government: Pitfalls and Possibilities - Christopher Hood and Henry Rothstein
Business risk management, taking a variety of forms, has been a growth point in corporate management in recent years. That change in emphasis is said to stem from responses to high-profile disasters like Bhopal and Exxon Valdez, increasing legal and regulatory pressure on risk management and a search for new approaches to formulating corporate strategy...
Risk Management and Business Regulation - Bridget Hutter and Michael Power
(This article was first published in the Financial Times Mastering Risk series, 2000 under the title of 'Power and Influence in Risk Regulation').
The regulation of business and corporate risk management are inextricably related. Regulation is one way in which risks are managed in modern societies and corporate risk management is a form of self-regulation, although senior management would not articulate it in such terms. In practice, the distinction between regulation and risk management is becoming blurred as risk management blueprints influence the design of regulatory systems. This is particularly evident in the latest thinking of the UK Financial Services Authority, which is required to maintain market confidence and protect consumers. The FSA's new operating framework builds on its earlier risk based approaches to regulation and recognises that the nature and intensity of its relationship with a regulated firm will depend on the risk assessment of that firm. Accordingly, there is a pronounced convergence in form between the FSA's approach to regulation and the risk management practice of the very entities that it regulates. This trend is also visible in other areas...