The importance of collaboration in regulatory stewardship G-REG conference – November 2018 Stephanie Winson

5 October 2011

The crisis cycle

Bad law We can all cite examples of bad law!

Regulatory Stewardship The adoption of a whole of system view and a proactive, collaborative approach to the care of the regulatory system. “…a deep commitment to continuous improvement.” Regulatory stewardship aims to shift the conversation away from crisis management into managed oversight and review.

Regulatory system? A collection of rules and frameworks that aim to achieve a particular public interest objective or social outcome Systems within systems

Why is regulatory stewardship important? Regulatory systems are: pervasive the backbone of most civilised nations serve significant social needs manage economic wealth and social wellbeing serve environmental priorities The real social cost of regulatory failure is well known Regulatory systems are not treated like assets

Regulatory performance ‘The prevailing “set and forget” approach to regulation means that regulators are often judged on their mistakes rather than on their successes.’

Regulators cannot do it alone

Learning from Regulatory disasters The incentives on individuals or groups Organisational dynamics and the complexity of the regulatory system Weaknesses, ambiguities and contradictions in regulatory strategies Misunderstandings of the problem and the potential solutions Problems with communication about the conduct expected or conflicting messages Trust and accountability structures.

It’s all about people Regulation is relational Regulation is about behaviours Regulation is about influencing Regulation is about people Need to invest in Regulators

Regulators must be aware of and respond to: limitations of the capacity and attitude of regulated firms, the weaknesses of their own organisational structures and processes, the pressures imposed by the market, legal and political context of the regulatory system as a whole, the potential points of failure in the regulatory techniques being used, knowledge and understandings of risks and markets, the role of communication and trust throughout the regime, and changes in each of these.

Collaboration Soft infrastructure Government and the public Stakeholder engagement Cross agency Genuine collaboration requires partnership A true conversation Standing in someone’s shoes

Conditions for good regulatory stewardship taking a whole of system view – looking beyond the particular agency to the others who operate in the system adopting a collaborative approach – recognising that as most systems involve more than one agency, we can't be effective if we don't work together being proactive in how we actively seek, share and use information on what is happening in the system.

Approaches to information analysis Best Practice System roles Tip the balance toward collaboration Mutual understanding at senior level sets the tone for collaboration and information sharing Approaches to information analysis Take a pragmatic approach to seeking common ground Understand each other and align information collection and analysis where possible

Best Practice (cont.) Skill development Provide for skill development in areas such as stakeholder engagement and regulatory stewardship Adopt learning partnerships and targeted short secondments Feedback loops Support brief inter-agency discussions about regulatory systems Leaders must support open, constructive environment for these inter-agency discussions

System review and monitoring Best practice (cont.) System review and monitoring Policy and regulatory agencies should develop a shared view of what should be monitored Policy/legislative agencies must remain active and watchful participants in regulatory system review and monitoring

Peer learning – the next frontier? Regulatory practitioners are generally good collaborators Common identity and shared problems Willingness to share and learn from each other Best practice guide and modern regulator practice framework Strengthen areas of focus

Thank you Stephanie Winson www.maritimenz.govt.nz DDI 04 494 1244 MOB 027 563 9439 EMAIL stephanie.winson@maritimenz.govt.nz Free 0508 22 55 22 Tel +64 4 473 0111 www.maritimenz.govt.nz