The importance of collaboration in regulatory stewardship

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

2. 5 October 2011

3. The crisis cycle

4. Bad law • We can all cite examples of bad law!

5. 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.

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

7. 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

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

9. Regulators cannot do it alone

10. 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.

11. 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

12. 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.

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

14. 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.

15. Best Practice

16. Best Practice (cont.)

17. Best practice (cont.)

18. 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

19. Thank you • DDI04 494 1244MOB 027 563 9439 • EMAIL stephanie.winson@maritimenz.govt.nz Stephanie Winson • Free 0508 22 55 22Tel +64 4 473 0111 www.maritimenz.govt.nz