Expert: The risk-oriented approach is a breakthrough in state governance

19 march 2019 | Rosbalt

Deputy Head of the Analytical Center Mikhail Pryadilnikov told the Vzglyad business magazine how efficiency of work in oversight and supervision is being improved. One successful example of the state setting clearly defined goals that he cited was the focus on reducing the administrative load on business, reducing risks for the population and improving the quality of administration.

Mikhail Pryadilnikov
Mikhail Pryadilnikov
Deputy Head

But, according to Mr. Pryadlnikov, it didn't happen overnight and the process took some evolving to get refined. On the one hand, it was necessary to reduce the risks and to tighten regulation in some areas, but at the same it was necessary to reduce the administrative load on business.

"One such mechanism was the so called risk-oriented approach where supervisory authorities focused on checking the most complex and dangerous facilities while not bothering businesses with fewer risks. As a result, about 60% of businesses subject to oversight and supervision were included in the low risk category and for the rest of businesses the number and scale of audits may even have increased," he added. According to Mr. Pryadilnikov, on the whole, this can be described as a breakthrough in state governance.

Work is currently underway to improve the culture and values of the auditors but it's a long process, the expert noted. "We need to see what motivates the people involved in the audits at the lowest level. And while in the past oversight and supervision authorities focused primarily on process related indicators such as number of audits or number of fines imposed, now, at least at the very top level, the goal is to focus on reducing the number of fires, the number of people falling ill etc.

I mean we want our auditors not to focus on the number of audits or fines, we want them to have the same values as the people. We believe, it will give a completely different result. But when it comes to culture and values you can't change them in a year, this type of change takes time to digest."

Source: Vzglyad

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