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UK gets new Risk and Regulatory Advisory Council

Get free weekly news by e-mailThe UK government has set up a new organisation, the Risk and Regulation Advisory Council (RRAC) as a key part of its drive to improve the way ‘public risk’ is understood and managed by government.

On taking office as Prime Minister, Gordon Brown stated his commitment "to ensuring policy-making benefited from a fuller and more rounded consideration of public risk". He asked the Better Regulation Commission (BRC) to make proposals to ensure "this ambition is embedded in real policy action, even when facing pressures to react to events." The BRC's report ‘Public Risk - The Next Frontier for Better Regulation’ was published earlier this week. Its central recommendation is the establishment of the Risk and Regulation Advisory Council. The Prime Minister has accepted the recommendation, saying: "The issue of public risk is one of the most challenging areas of policy-making for any government. I have asked the Risk and Regulation Advisory Council to provide a catalyst for the change we need in the way policy is developed across all departments. I am pleased to offer my support to the Council as they embark on their work to improve public policy making."

Chaired by Rick Haythornthwaite, the new, independent Council has seven unpaid members, with deep experience in regulatory issues drawn from the public, private and third sectors, consumer groups and trades unions. The RRAC will take forward the UK's first ever work programme dedicated to understanding and promoting proportionate responses to public risk, particularly when faced with event-led pressure. Its terms of reference are:

* Working with Ministers and senior civil servants to develop a better understanding of public risk, and how best to respond to it, through a series of workshops which consider both good and poor practice.

* Working with external stakeholders to help foster a more considered approach to public risk and policy making.

* Ministers may also seek advice on particular issues from time to time.

The RRAC will report to the Prime Minister. The initiative, led by No 10 and managed by BERR and its Secretary of State John Hutton, will be pan-governmental and cover public, voluntary and business sectors. The workshop-centred programmes will focus on specific policy issues and be supported by research, teaching tools and a web-based community of interest. The choice of topics to be addressed over the next year will be finalised after consultation with stakeholders.
Topics under consideration at present include, amongst others, systemic risk aversion and aspects of corporate governance, as well as good practice from the recent animal disease outbreaks.

Chair of the RRAC, Rick Haythornthwaite, commented: "The regulatory reform agenda has evolved and creating the RRAC is a natural progression from the achievements of the Better Regulation Commission. The RRAC will look at the process of policy-making from the outset to help improve regulatory decision-making at the source. The prize on offer to all is very considerable - accelerated improvement not only in regulatory burdens but also in broader policy effectiveness and the management of everyday risks. The BRC's Risk Report touched a nerve and put the spotlight on the relationship between risk and regulation, acknowledging that all parts of society are responsible for a disproportionate attitude towards risk. The RRAC's work will involve regulators, risk experts, Parliament, lobby groups, the media and the public; it will not solely focus on government but also work towards improving the quality of dialogue with the public on risk issues. We accept the PM's challenge with enthusiasm."

An interim website for the RRAC is available at
http://www.berr.gov.uk/about/economics-statistics/rrac/index.html

Date: 17th January 2008• Region: UK •Type: Article •Topic: Operational risk
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