Nigel's Eyes

20220105 Regulation: a better approach

There are differences in approaches to risk and compliance.

The UK's government has issued a statement relating to health protection measures applicable in the aviation industry.

It provides an interesting contrast to the attitude of financial services regulators.

There are requirements that must be followed. In addition there is guidance as to what must be done but there is no detailed "how to."

Across the aviation industry, operators must undertake risk assessments, identify appropriate policies and procedures and apply them. The operators are left with considerable leeway in exactly what they do and exactly how they do it.

It sets objectives not principles which provides for penalisation for failures in risk rather than penalties for failures in compliance.

Here's the question: isn't this a far more satisfactory approach than detailed prescription as we see in financial crime risk and compliance regulation?

Make up your own mind: it's at…

Compare it to what you have to deal with in the financial sector.