1. System based supervision/enforcement Martin de Bree Erasmus University Rotterdam

2. Content  Challenges for modern public regulatory supervision/enforcement  Problems traditional supervision/enforcement  Private compliance assurance / self-regulation  System based supervision/enforcement  Targeted approach  Conclusions

3. Challenges  Expectations from society  More with less  Balancing formal generic rules with informal situational common sense  Deterrence not effective for responsive companies

4. Problems traditional supervision/enforcement  Does not stimulate learning to improve compliance  Company stays a black box  Requires big capacity to be effective  Not suitable for complex & dynamic environments  One size fits all  Does not use self regulating potential of companies

5. Private compliance Data collection & checks Interventions Public supervision/enforcement

6. Private compliance

7. System based supervision System approach Private assurance 1 3 4 4 132 2 match Mismatch: Frustration & inefficiency Mismatch: Too much freedom, risks

8. System based supervision Compliance Company: Black box

9. Compliance Company: Black box System based supervision Double loop learning !

10. Targeted approach

12. Conclusions  System based approach promising: targeting enforcement stimulating self-regulation  Only feasible in industries with willing and competent companies  Requires inspectors who can assess management systems  Requires differentiated supervision strategy