What does an effective regulator look like?
The cost of regulation to industry and its impact on the industry’s operations is being discussed across the world as countries seek to gain economic competitive advantage. Some argue that safety and environmental regulation is an unnecessary cost to industry and that the burdens imposed are not worthwhile. Based on Noetic’s 15 years’ experience in working with regulators around the world, this Noetic Knowledge provides the case for why regulation of even the best managed companies is necessary, and what the role of the regulator is. The paper details the activities a regulator should be undertaking, and the types of tools and approaches that result in good outcomes. These include the importance of using a carefully-developed regulatory strategy and the targeted use of regulatory actions. The paper concludes with an analysis of the capabilities of an effective regulator, both organizationally and individually. While this paper uses the coal mining industry to illustrate its points, the findings are equally applicable to the regulation of high hazard and risk industries such as oil and gas, petrochemical and hard rock mining.