enhancing transparency and engagement through digital toolsmddb.apec.org › documents › 2018 ›...

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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


RISK-BASED REGULATION

Market Financial

Operational Reputational

Risk


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


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


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


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


BEST PRACTICES: RISK MATRIXThe inspections are scheduled according to the risk analysis: Risk Matrices and Risk Map


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


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


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


BEST PRACTICES: WEB PAGE WWW.GOB.MX/ASEA


Source: ASEA’s webpage

https://www.gob.mx/asea

BEST PRACTICES: WEB PAGE

Audit reports

Infographics

Procedure guidelines

Laws, provisions, and official standards

Actions and programs

Record of meetings with non-government stakeholders


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


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