Dane NewtonSenior Manager, Risk & Analysis
4 April 2017
Enhancing Rail Safety through Risk-based Regulation
Office of the National Rail Safety Regulator 2
ONRSR is a risk-based regulator
ONRSRRegulatoryApproachKeyprinciple
Risk-basedregulation
CorporatePlan2016-19,Goal1Maintainandimproverailsafetythrougharisk-basedapproachto
regulation
ONRSRRegulatoryActivities&Decisions
NationalONRSRFrameworkforRisk-basedRegulation
Office of the National Rail Safety Regulator 3
What is risk-based regulation?Theapplicationofa
systematicframeworkthatprioritisesregulatoryactivitiesanddeploymentofregulatorsresourcesonan
evidence-basedassessmentofrisk
Baldwin&Black2007;Black2010
Whileregulatorshavealwaysmaderegulatorydesign,implementationandallocationchoices,partlytomanagelimitedresource,risk-basedregulationformalises
andprovidesconsistentstructuretothedecisionmakingprocess
Sparrow2000
Office of the National Rail Safety Regulator 4
> Better targeted and more efficient use of resource
> Greater consistency of regulatory decisions
> Increased objectivity, clarity and transparency of regulatory decisions
> Decision making that will stand up to greater scrutiny
Why be risk-based?
Office of the National Rail Safety Regulator 5
We Administer a Risk-based Law
Office of the National Rail Safety Regulator 6
ONRSRs Approach to Risk-based Regulation
> Developed based on research of good practice> Designed to fit ONRSRs role as set out by law> Built recognising the co-regulatory framework
Focuses on the decisions ONRSR makes and what risk-based requirements should be applied
Office of the National Rail Safety Regulator 7
ONRSRs Model for Risk-based Regulation
Office of the National Rail Safety Regulator 8
A model for risk-based regulation
Operatorsriskmanagementactivities
Operatorssafetyperformance
Risk-baseddecisionmaking
ONRSRactivities
1.Gatherregulatoryintelligence
2.Considerriskstorail
safety
3.Makeregulatorydecisions
4.Undertakeregulatoryactivities
Operatorsactivities
Office of the National Rail Safety Regulator 9
A model for risk-based regulation
1.Gatherregulatoryintelligence
2.Considerriskstorail
safety
3.Makeregulatorydecisions
4.Undertakeregulatoryactivities
Operatorsriskmanagementactivities
Operatorssafetyperformance
Risk-baseddecisionmakingIntelligence Decisions ActivitiesRisks
Risk-basedRegulation
ONRSRactivities
Operatorsactivities
Office of the National Rail Safety Regulator 10
Gather Regulatory Intelligence
Intelligence1.Gatherregulatoryintelligence
Risks2.Considerriskstorail
safety
3.Makeregulatorydecisions
Decisions Activities4.Undertakeregulatoryactivities
Risks
Operatorsriskmanagementactivities
Operatorssafetyperformance
2 431
Intelligence
Office of the National Rail Safety Regulator 11
Gather Regulatory Intelligence
Notifiable occurrences Monthly returns Safety performance reports Annual activity statements Operator investigation reports
ATSB investigation reports Confidential reports (REPCON) Coroner reports Overseas investigation reports Overseas intelligence reports
Findings from audits Findings from inspections Findings from operational /
compliance investigations Findings from field trips
OperatorReports
Accreditationactivities
Thirdpartyreports
Complianceactivities Assessing applications for
accreditation / registration Assessing applications for variation
of accreditation / registration Reviewing Notifications of Change
Externalreporting
Findingsfromregulatoryactivities
2 431
Intelligence
Office of the National Rail Safety Regulator 12
Gather Regulatory Intelligence2 431
Intelligence
Intelligence1.Gatherregulatoryintelligence
ExternalReports
Rail OperatorReporting
ATSBReports Occurrences
REPCON PeriodicData
CoronerReports
SPRs/AASs
InvestigationReports
1.Gatherregulatoryintelligence
Risks2.Considerriskstorail
safety
3.Makeregulatorydecisions
Decisions
Operatorsriskmanagementactivities
Operatorssafetyperformance
Activities4.Undertakeregulatoryactivities
Risks
Operatorsriskmanagementactivities
Operatorssafetyperformance
AccreditationActivities
ComplianceActivities
Variations Audits
Conditions Inspections
Not. ofchange
Investigations
Applications FieldTrips
Office of the National Rail Safety Regulator 13
Consider risks to rail safety 2 431Risks
Risks2.Considerriskstorail
safety
3.Makeregulatorydecisions
Decisions
Operatorsriskmanagementactivities
Operatorssafetyperformance
ExternalReports
Rail OperatorReporting
ATSBReports Occurrences
REPCON PeriodicData
CoronerReports
SPRs/AASs
InvestigationReports
AccreditationActivities
ComplianceActivities
Variations Audits
Conditions Inspections
Not. ofchange
Investigations
Applications FieldTrips
1.Gatherregulatoryintelligence
Activities4.Undertakeregulatoryactivities
Risks
Office of the National Rail Safety Regulator 14
Consider risks to rail safety 2 431Risks
Harmtopeople
Riskofoperators
Riskofactivities
Operatorriskfactors Compliancehistory Responsiveness SMSmaturity Size&scopeof
operationsHazardousEvents
Derailment Collision Trackworker
struck Passenger
falls
Riskofchanges
Riskofassets
Riskofrailsafetyworkers
Riskofoccurrences
Changeriskfactors Novelty Complexity Interfaces Consultation
Assetriskfactors Age Condition Criticality
Office of the National Rail Safety Regulator 15
Consider risks to rail safety 2 431Risks
RisksRisks2.Consider
riskstorailsafety
3.Makeregulatorydecisions
Decisions
Operatorsriskmanagementactivities
Operatorssafetyperformance
ExternalReports
Rail OperatorReporting
ATSBReports Occurrences
REPCON PeriodicData
CoronerReports
SPRs/AASs
InvestigationReports
AccreditationActivities
ComplianceActivities
Variations Audits
Conditions Inspections
Not. ofchange
Investigations
Applications FieldTrips
1.Gatherregulatoryintelligence
2.Considerriskstorail
safety
OperatorRiskFactors
RailSafetyWorkerRiskFactors
ChangeRiskFactors
AssetRiskFactors
Activities4.Undertakeregulatoryactivities
Office of the National Rail Safety Regulator 16
Make regulatory decisions
3.Makeregulatorydecisions
Decisions
Operatorsriskmanagementactivities
Operatorssafetyperformance
ExternalReports
Rail OperatorReporting
ATSBReports Occurrences
REPCON PeriodicData
CoronerReports
SPRs/AASs
InvestigationReports
AccreditationActivities
ComplianceActivities
Variations Audits
Conditions Inspections
Not. ofchange
Investigations
Applications FieldTrips
1.Gatherregulatoryintelligence
2.Considerriskstorail
safety
OperatorRiskFactors
RailSafetyWorkerRiskFactors
ChangeRiskFactors
AssetRiskFactors
Activities4.Undertakeregulatoryactivities
2 431
Decisions
Office of the National Rail Safety Regulator 17
Make regulatory decisions 2 431Decisions
Tier3Decisions
Tier2Decisions
Tier1Decisions
PrincipalFocusofRisk-basedRegulation
Decision-specificrequirementsapply E.g.Decisiontoaccreditarailoperator
SecondaryFocusofRisk-basedRegulation
Genericrequirementsapply E.g.Decisiontodevelopnewsafety
guideline
NoRisk-basedRegulationRequirementsApply
Involvesdecisionsofacorporatenature
E.g.Selectingapublishingserviceproviderforcorporatereports
Office of the National Rail Safety Regulator 18
Risk-based to what degree? 2 431Decisions
Decisionswhere: ThereislittlepotentialimpacttoONRSRsabilitytomaintainand
improverailsafety Takingarisk-basedapproachaddsnovalue Theconsequenceofnottakingarisk-basedapproachisnegligible Thecostoftakingarisk-basedapproachoutweighsthebenefitgained
Decisionswhere: ThereisasignificantpotentialimpactonONRSRsabilitytomaintain
andimproverailsafety Takingarisk-basedapproachaddssignificantvalue Theconsequenceofnottakingarisk-basedapproachcouldbe
catastrophicforrailsafety Thebenefitgainedbytakingarisk-basedapproachoutweighsthecost
NotRisk-based
VeryRisk-based
Office of the National Rail Safety Regulator 19
Risk-based to what degree? 2 431Decisions
NotRisk-based
VeryRisk-based
RiskConsiderationLevels
RCL-0 The decision does not need to be informed by consideration of risks to rail safety
RCL-1 The decision will be informed by an implicit consideration of risks to rail safety
RCL-2 The decision will be informed by implicit consideration of a pre-determined set of rail safety risk factors.
RCL-3 The decision will be informed by explicit consideration of a pre-determined set of rail safety risk factors.
RCL-4 The decision will be informed by an explicit, qualitative assessment of risks to rail safety.
RCL-5 The decision will be in
