Inspection system reform

INSPECTION SYSTEM TODAY: provides for control only over formal compliance with requirements, but not over minimization of risks as well as uses punishment measures instead of persuasion methods.

WE PROPOSE: to reorient the system of state supervision (control) to the risk management system.

This requires:

  • moving to the practice of persuasion, that is, establishing an individual list of requirements for each type of business and explaining why each requirement is important and to what extent;
  • implementing an effective risk-based approach that includes:
  • creating a national list of risks with their distribution for each area of ​​state control;
  • determining the level of acceptable risk in each area of ​​state control;
  • identifying connections between risks and legislative requirements aimed at reducing them to an acceptable level;
  • defining the most important legal requirements, the compliance with which should be monitored on a first-priority basis;
  • functioning of a point-rating system of categorization of business entities according to the risk level;
  • creating and running a unified national IT system, which includes information on the implementation of state control in all areas.

A number of draft regulations, which are the basis for introducing a new risk management system, have been ALREADY developed.

The pilot module of the online system of inspections IAS (Integrated Automated System), which contains 22 annual plans of inspections of supervisory bodies (and this means more than 100 thousand planned and integrated inspections) was launched.

In addition, we developed and launched a course of training sessions for employees of inspection bodies.

 

What will the state get after the inspection reform implementation?

– Reduced number of negative factors (accidents, fires, accidents at work, food poisonings, car accidents, etc.);

– Budgetary savings;

– Reduced corruption.

 

What will businesses get?

– Understanding the rules of doing business and reasons for their existence;

– A clear correlation between the frequency of inspections and the business risk level;

– Real incentives to comply with legal requirements on “less violations – less inspections” basis.

 

For more information on introducing the risk management system, see the presentation:

Download (PDF, 923KB)

The new risk management system is based on:

The Draft Resolution of the Cabinet of Ministers of Ukraine “On Approval of the Methodology for developing criteria to assess the risk level of economic activity and determine the frequency of planned state supervision (control) measures as well as unified forms of acts drawn up on the basis of planned (unplanned) state supervision (control) measures”, which establishes:

The methodology for developing criteria to assess the risk level of economic activity and determine the frequency of planned state supervision (control) measures

The methodology for developing unified forms of acts drawn up on the basis of planned (unplanned) state supervision (control) measures.

In 2016, the BRDO team participated in drafting the Law “On Amendments to the Law of Ukraine “On Basic Principles of State Supervision (Control) in the Sphere of Economic Activity” regarding the liberalization of the system of state supervision (control) in the sphere of economic activity, which in November 2016, supplemented the Law with the provision on the Integrated Automated System of state supervision (control) – abbreviated “IAS SSC”.

The presentation on developed amendments is available here

From the beginning and until October 2017, the BRDO team together with the State Regulatory Service of Ukraine has been working on the IAS SSC development and launch.  

During this period, we:
– provided a detailed description of all the legal requirements to the IAS SSC;
– developed a list of information resources (catalogs), which are necessary for the IAS SSC functioning and prepared some of them;
– together with the State Regulatory Service of Ukraine provided methodological support for this activity and carried out system consultations of the technical specification developers;
– launched the pilot module for planning state supervision (control) measures and collecting data for the IAS SSC. 

The pilot module for planning state supervision (control) measures and collecting data for the IAS SSC is the first step towards creating a full-featured system that will cover the maximum number of state control areas in Ukraine. As of December 1, 22 supervisory bodies registered in the system and published their approved inspection plans for 2018. In total, the system already contains information on more than 100,000 inspections planned for 2018, about 30,000 of which are the integrated ones. 

For the first time in Ukraine, all planned business inspections are available on one website with a convenient search option and additional capabilities for both supervisory bodies and businesses:
– now the maximum number of regulations, the requirements of which are checked by supervisory bodies, are available in one place;
– unified forms of inspection acts of those bodies that have already joined the system are collected and updated on the portal;
– the portal provides access to acts, which approved the criteria to assess the risk level of business entities. 

We are still working on improving the Pilot module, and since its launch, almost 80 thousand people has visited it. 

Learn more at https://ias.brdo.com.ua/

This is a training program for employees of inspection bodies.

Goal: to explain new approaches to risk assessment and develop unified forms of acts as well as train in the use of the Pilot module for planning state supervision (control) measures and collecting data for the IAS SSC.

Target audience: employees of state supervision (control) bodies, which will develop/use criteria to assess the risk level of business entities and unified forms of acts.

The first training to learn more about the work with the IAS SSC Pilot module was held in October, and it was attended by about 60 people from 26 supervisory bodies.

 

We are working on the development of a training program for employees of supervisory bodies for 2018. 

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