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The Government is looking for ways to reduce the burden on the business, on the one hand, and to identify unscrupulous players more accurately, on the other. Introduction of a risk management-based model is expected to make this supervision more effective.
The existing supervision framework is ineffective, in particular, due to the following:
In April 2016, the Government approved a supervision improvement roadmap. Currently, the Ministry of Economic Development is drafting a law on the fundamentals of government and municipal control (supervision) in the Russian Federation which will serve as a legal base for a reform. The reform provides for a shift of emphasis from the punishment for breaches to the management of risks and potential damage prevention.
Switching to the risk-based approach is the key point of the reform:
An important supervision principle with the new framework is transparent government operations and their transparent results. Supervised entities will have access to up-to-date information, and the Government will be able to come up with a quick response to any infringements of business rights by supervisors.
The reform has already shown some early results:
It was actually before the supervision reform that the risk-based approach showed some good results in several supervisory bodies: