System based supervision/enforcement

Martin de BreeErasmus University Rotterdam

Content

Challenges for modern public regulatory supervision/enforcementProblems traditional supervision/enforcementPrivate compliance assurance / self-regulationSystem based supervision/enforcementTargeted approachConclusions

Challenges

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

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

Private compliance

Data collection & checks

Interventions

Public supervision/enforcement

Private compliance

System based supervision

System approach

Privateassurance

1

3

4

4

1 32

2

match

match

match

matchMismatch:Frustration &inefficiency

Mismatch:Too much

freedom, risks

System based supervision

ComplianceCompany:Black box

ComplianceCompany:Black box

System based supervision

Double loop learning !

Targeted approach

Targeted approach

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