Regulatory Impact Analysis

Regulatory impact analysis (RIA) is a systematic process for appraising the likely costs, benefits and effects of proposed regulation before it is adopted. Promoted by the OECD as a cornerstone of good regulatory governance, it requires governments to define the problem a regulation is meant to solve, set out alternative options including non-regulatory ones, assess the impacts of each against a do-nothing baseline, consult affected parties, and recommend the option that delivers the greatest net benefit. RIA aims to ensure that new rules are evidence-based, proportionate and justified rather than imposed without examination of their consequences.