The implementation and monitoring steps are two of the most overlooked, but most important, steps in the policy development process.
Before regulatory changes are proposed or made, the government expects that regulatory agencies will, among other things:
- identify and address practical design, resourcing and timing issues required for effective implementation and operation, in conjunction with the regulator(s) who will be expected to deliver and administer the changes
- test key operational processes required to implement the change, and
- provide for any appropriate changes to system monitoring arrangements.
RIA requires consideration of how the preferred option would be implemented if agreed to. Expected benefits of a proposal will not materialise unless careful implementation arrangements are thought through; poor implementation planning can lead to unexpected costs and perverse incentives.
RIA should cover the entire implementation and enforcement stages of the policy. RIA should describe the impact of different choices around enforcement strategy on costs and benefits – this includes consideration of how enforcement costs will be funded.
The RIA Handbook contains more information on effective implementation design: Implementation chapter.
Monitoring, evaluation and review
RIA must establish the agency’s plans for monitoring, evaluating, and reviewing the performance of a proposal over time. The RIS must answer the following questions:
- How will the Agency determine when and whether the regulatory changes have performed well?
- How will the Agency assess whether the preferred option continues to have a greater net-benefit than alternatives?
The RIA Handbook contains more information on effective monitoring, evaluation and review design: Monitoring, evaluation and review chapter.