What is a response to a regulatory failure?

In the wider context, a response to a regulatory failure was usually to put a new policy or protocol in place. In some cases, this might be to deal with the (low probability) combination of factors that had been revealed in a previous incident. In other cases, the aftermath of perceived failure had led to an expansion in the scope of inspections.

What causes regulatory failure?

But unfortunately, there is no agreed definition, and there typically are no simple explanations of the causes of regulatory failure. One of the main reasons this is challenging to define and explain regulatory failure is that it is often as much an analytical as a rhetorical issue.

What is an example of a regulatory failure?

Shortcomings may have occurred at different levels and stages. Different circumstances for the emergence of the perception of regulatory failure were identified. One example was where the potential occurrence of a risk had been identified, but where the decision had been taken, given resource constraints, to prioritise other activities.

What is a failure in regulation?

A final ‘kind’ of failure that is often observed from a public interest point of view is too costly regulation or situations where the costs of regulation do not outweigh the benefits. It is often complicated for a regulator to provide good insights into (all) the (economic) benefits of regulation.