Inspection Reform: Approaches and New Trends in Effective Regulatory Delivery Intercontinental Hotel, Amman, Jordan, June 2-3 Introducing a Shared Inspection Management System: Approaches in Practice GORAN VRANIC, IT Consultant

SIMS OBJECTIVES AND TASKS Businesses level Enable application of self-assessment and information availability on risks, regulation requirements and standards Inspector level Enable systematic application of inspection experience and knowledge, standardization, self-organization and implementation of risk-based inspection principles Inspectorate level Optimal inspection resources management applying risk-based planning and real-time tracking of inspections Inspection system level Efficient coordination of inspectorates through information sharing and joint inspections planning State level Application of feedbacks suggesting regulations improvements and reducing administrative barriers

ALIGNMENT WITH REGULATORY, REGISTRATION, LICENSING AND INSPECTION REFORMS Defining a strategic approach to inspection reform that includes SIMS IT initiative (Re)Design of inspection processes (process regulation improvement, e.g. horizontal law on inspections) Identification of substantive regulations’ requirements and inspection checklists preparation Interoperability with businesses and licenses registries Identification of risk indicators and design of risk models and algorithms Organizational improvements and capacity building (e- Readiness)

SIMS STRUCTURAL ENTITIES FRAMEWORK OF SUBSTANTIVE REGULATIONS KNOWLEDGE DATABASE ORGANIZATIONAL AND PROCESS FRAMEWORK INSPECTION SYSTEM INSPECTORATES SURVEILLANCE SECTORS INSPECTION CHECKLISTS INSPECTION CHECKS IRREGULARITIES OBJECTS TYPES INSPECTION MEASURES INSPECTION ACTIVITIES BUSINESS ACTIVITIESLICENSE TYPES PRODUCT TYPES

SIMS SOFTWARE ARCHITECTURE INSPECTION FUNCTIONS AND ORGANIZATION MODULE surveillance sectors, organizational structure, jurisdictions, inspectors and competences INSPECTION CHECKLISTS’ MANAGEMENT MODULE checks, irregularities, measures, regulations DOCUMENT/CASES MANAGEMENT MODULE office record management, support for mobile devices KNOWLEDGE DATABASE MODULE inspection preparation, inspection s’results, decision support INSPECTION STATISTICS MODULE plans’ execution, KPI time series, taken measures, checks and indicators, geo- positioning BORDER INSPECTION MANAGEMENT event-driven, integration with customs and IBM systems, online trackng of cases, integration with rapid-alert systems RISK MANAGEMENT MODULE risk-based planning, comprehensiveness planning, adequate selection of inspection measures PLANNING MODULE multi-annual, annual, operational plans, joint inspections plan and inspectors’ schedules REGISTER OF BUSINESSES, OBJECTS, LICENSES AND PRODUCTS established based on data exchange with state registries E-INSPECTIONS PORTAL AND INTEROPERABILITY (G2B, G2C ) checklists registry, complaints, risks and self-assessment

Bosnia / RS Approach (Complex SIMS) – 10 steps SIMS implementation Driving regulatory reform “Regulatory Guillotine” Inspection checklists development teams with a total of 40 inspectors worked on inventory of inspection related measures and development of procedures 3 3 Inspection processes redesign ICT capacity building ICT infrastructure establishment Proof of Concept implementation basic ICT infrastructure implemented to support basic ICT services and inspection reporting software as a proof of concept 6 6 ECDL computer literacy training Application software implementation Application software development Application software deployment final design of the software prepared and rolled out with support of 17 inspector trainers. Internet site and inspection checklists published. 9 9 Proof of sustainability 10 Transparency improvements

Bosnia / RS Approach (Complex SIMS) – Effects Inspection procedures were unknown and requirements unclear All inspection checklists and regulations are available over the Internet Time spent on inspections were measured in days during a year Average duration of on-site inspections is around 6 hours during a year Connection with the Inspectorates was weak and based on written complaints Complaints could be reported through the online complaints system Inspection documents were unreadable, unstandardized and unclear All inspection documents are prepared in an electronic way by using standardized templates Inspectors were issuing penalties each time when they found significant irregularities Based on available inspection history, “inspection measures pyramid” was applied in choosing right measures BEFORE TODAY

Cambodia Approach Short-term (basic single inspectorate IMS) and long-term plan (shared IMS)

Online Demonstration and Demos – afternoon session - stay tuned Bosnia/RS - Complex Shared IMS Example Bosnia/RS - Complex Shared IMS Example: Create inspection case, fill-in inspection checklists and generate inspection report and decision with inspection measures Cambodia - Basic IMS Example Cambodia - Basic IMS Example: Generate automatically operational plan using simple risk algorithm (list of businesses that should be inspected based on calculated risks applying risk management module with risk categories and indicators)

CONCLUSION and Q&A Number of cases without irregularities increased for 5% in period Number of cases without significant irregularities increased for 3.5% in period (earlier without changes) Statistically from the total number of businesses (around ) at least 1,400 are doing business without hazards and significant irregularities Estimating minimal financial damage as result of potential hazards to 10,000EUR the financial effect is minimum 14mil. EUR

Thank you!