Risk-based regulation for all: The need and a method for a wide adoption solution for data-driven inspection targeting
It aims to provide regulators with objective, transparent, and low-cost tools for market monitoring, though it appears incremental in applying existing methods to regulatory contexts.
The paper addresses the lack of widely adopted data-driven solutions for regulatory inspection targeting, proposing an effective method for risk-based regulation planning and illustrating its application to consumer protection.
Access to data and data processing, including the use of machine learning techniques, has become significantly easier and cheaper in recent years. Nevertheless, solutions that can be widely adopted by regulators for market monitoring and inspection targeting in a data-driven way have not been frequently discussed by the scientific community. This article discusses the need and the difficulties for the development of such solutions, presents an effective method to address regulation planning, and illustrates its use to account for the most important and common subject for the majority of regulators: the consumer. This article hopes to contribute to increase the awareness of the regulatory community to the need for data processing methods that are objective, impartial, transparent, explainable, simple to implement and with low computational cost, aiming to the implementation of risk-based regulation in the world.