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2018/SOM3/EC/CONF/008
Enhancing Transparency and Engagement Through Digital Tools
Submitted by: Mexico
Conference on Good Regulatory Practices - Regulatory Reform the
Digital Age Port Moresby, Papua New Guinea
12-13 August 2013
ENHANCING TRANSPARENCY AND ENGAGEMENT THROUGH DIGITAL TOOLS
2018 APEC Conference on Good Regulatory Practices12-13 August, Port Moresby, Papua New Guinea
RISK-BASED REGULATION: THE CASE OF MEXICO’S ASEA
Dr. Ricardo MassaPIRCE - CIDE
2018 APEC Conference on Good Regulatory Practices, 12-13 August, Port Moresby, Papua New Guinea
RISK-BASED REGULATION
Enterprise Risk Management-Integrated Framework, COSO (2017)
OECD, Risk and Regulatory Policy: Improving the Governance of Risk (2010)
Focus resources on high risk activities Likelihood of adverse events, potential magnitude, and severity of consequences
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
RISK-BASED REGULATIONEnergy sector: High impact, high risk activitiesLaw of the Coordinated Energy Regulators (LORCME) 2014: Accountability and transparency conditions for regulators
Risk measures are fundamental for prescriptive regulationProbabilistic aspects
Capacity to collect, process, analyze, store, and communicate data Information Technology (IT) and Digital tools
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
RISK-BASED REGULATION
Market Financial
Operational Reputational
Risk
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
RISK-BASED REGULATION: OPERATIONAL RISK
OECD, Regulatory Enforcement and Inspections Toolkit (2018)Criterion 1: Evidence-based enforcementCriterion 3: Risk focus and proportionality Criterion 4: Responsive regulation Criterion 6: Co-ordination and consolidation Criterion 7: Transparent governance Criterion 8: Information integration Criterion 9: Clear and fair process Criterion 10: Compliance promotion Criterion 12: Reality check
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
RISK-BASED REGULATION: REPUTATIONAL RISK
Reputational risk vs Regulatory captureRules of communication with regulated entities
Build confidenceTechnical and implementationTransparency and constant communication
Institutional culture as a pillar for reputational risk strategyDigital technology to enforce effective communication
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
ASEA
Agency for Safety, Energy and EnvironmentStarts operating in 2015
Technical regulatory body responsible of the industrial and operationalsafety, and environmental protection in the Mexican hydrocarbons sector.
Globally unique technical regulator as it oversees the whole value chain:upstream, midstream, downstream and retail.
Source: ASEA’s webpage
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
ASEA: INSPECTION AND SUPERVISION
Five pillars Industrial, Operational and Environmental Safety Management SystemsFinancial responsibility of the regulated entities Performance-based regulationsPromoting compliance over sanctions Inspections are scheduled according to risk analysis Supported by third-party inspectors
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
BEST PRACTICES: RISK MATRIXThe inspections are scheduled according to the risk analysis: Risk Matrices and Risk Map
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
Source: ASEA (2017) Supervision, Inspection and Industrial Surveillance Unit
2017 Risk Map
Prob
abili
ty o
f oc
curr
ence
Degree of impact
BEST PRACTICES: CORRECTIVE MEASURES CATALOGUETransparency for the regulated entityRubric-like document provided in advanceOpen to modifications Promotes compliance over sanctionsThree classifications: corrective, urgent application, and security measures
General database to concentrate inspection files and their follow-ups
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
BEST PRACTICES: INSPECTION PROTOCOLProgram for third-party inspectors’ certification
Inspection satisfaction surveys
Third-party inspector’s evaluation to detect possible collusion withregulated entities
Supervision and inspection processes rely heavily on the digitalizationof evidence
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
BEST PRACTICES: RISK ATLAS
ASEA’s internal management model is based on processes facilitatedby a digital platform.Builds on institutional risk cultureVisualize workflows and exchange of information between the differentunits of the agency Summary of ongoing procedures and unit in charge of the “next step”
Mapped using an institutional architecture with links to the relevantdocuments of each process
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
BEST PRACTICES: WEB PAGE WWW.GOB.MX/ASEA
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
Source: ASEA’s webpage
BEST PRACTICES: WEB PAGE
Audit reports
Infographics
Procedure guidelines
Laws, provisions, and official standards
Actions and programs
Record of meetings with non-government stakeholders
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices
REFERENCES
ASEA (2017) Supervision, Inspection and Industrial Surveillance Unit. General Office for supervision, inspection and commercial surveillance.
ASEA (2018) Webpage https://www.gob.mx/asea
COSO (2017) Enterprise Risk Management: Integrating with Strategy and Performance. Committee of Sponsoring Organizations of the Treadway Commission https://www.coso.org/Pages/erm.aspx
OECD (2010) Risk and Regulatory Policy: Improving the Governance of Risk. OECD Reviews of Regulatory Reform, OECD Publishing, Paris, https://doi.org/10.1787/9789264082939-en.
OECD (2018) OECD Regulatory Enforcement and Inspections Toolkit. OECD Publishing, Paris. https://doi.org/10.1787/9789264303959-en
Dr. Ricardo Massa PIRCE-CIDE 2018 APEC Conference on Good Regulatory Practices