Unlocking Excellence: Mastering Great Regulatory Reporting

Many regulators aim to be data-savvy, focused on the key risks or harms, and be outcomes oriented. But let’s face it, putting this into practice isn’t always easy. Data can be spread across multiple systems, including paper-based forms, emails and individual spreadsheets. It can be unreliable, difficult to extract in real time, to identify trends, to dig into specific cases, or to identify bottlenecks.

One big step toward better performance is having solid reporting systems in place. As the Australian National Audit Office pointed out:

A solid performance management framework is key for a regulator's effectiveness. It's not just about managing the agency internally but also showing stakeholders that we're following the rules, doing things efficiently, and getting the outcomes we want (2014, p.27).

In this post, let's dig into the main things that make regulatory reporting effective, split into five key parts:

1. Relevant and Quick to Respond

To provide effective and efficient reporting, regulators need to know what decisions matter most in our organisation. This means engaging with decision-makers at all levels to make sure the data collected and how its presented it is actually helpful and seen as a strategic asset for the organisation and used for the greatest impact.

An ideal reporting system is supported by a developed information collections approach, which lets regulators pull out different levels of data and information to create actionable insights for strategic, operational, and tactical decisions. A monitoring and evaluation focus will help determine how effective regulators have been and areas for improvement. And it should allow data to be to exported to other analytical tools, like Power BI or Tableau.

2. Getting it Right

Accuracy is at the heart of effective reporting. Regulators need to make sure data is well-integrated, well-governed, and well-managed, this reduces the potential for fragmentation and duplication. Re-entering data when field staff get back into the office not only wastes time, it makes errors more likely. And, it's not just about numbers matching; it is about having the ability to draw meaning from the data and use it to support decision making.

To keep things accurate and increase data quality, clear standards are needed and guidelines for data entry and reporting, as well as access controls to protect privacy and confidentiality. And that means also defining what data is being collected, why its being collected, how it will be used, and making sure it all adds up– that is robust data governance. Using technology tools like automated checks and real-time reporting can improve accuracy.

3. Teamwork and Sharing

Working well together and sharing information and insights across different parts of a regulator is key to seeing the big picture. There may be data from licence approvals, inspections, plus insights and information from public complaints, outside audits, and reports from the businesses being regulated. Bringing all this together helps us spot issues and trends early on, but sometimes, data is scattered across different systems or even spreadsheets. Our recent survey, The Government Regulatory Data Report, found that only 18 per cent of respondents had an integrated licensing and inspection/investigations management system – but more than half of the rest were planning or considering such a system.

Ideally, regulators should also team up with other regulators for data and information exchange. For example, agencies like WorkSafe Victoria and Energy Safe Victoria coordinate inspections during solar panel installations, using data from Solar Victoria to know when and where things are happening.

4. On Time

Being on time with reports is very important. Systems that automatically schedule follow up actions reduces the risk that something will slip between the cracks. Systems that document processes, not only strengthen the consistency of decision making, but also highlight processing bottlenecks. And it means decision-makers get the latest information and insights they need to effectively prioritise and allocate resources and take action where needed.

Using technology like data analytics and reporting tools can speed up the process, cut down errors, and keep things on schedule. But this requires an organisational commitment to investing in new tools, and the capability to use them, so as to achieve the potential improvements in efficiency and effectiveness.

5. Keep it Clear and Honest

Transparency in decision making, backed by quality reporting is the backbone of good regulation. Being transparent means sharing information openly, so everyone knows why certain decisions are made. Accountability means taking responsibility for what is reported and making sure it is accurate and meets the needs of privacy and confidentiality policies.

Harvard’s Malcolm Sparrow is famous in regulatory circles for his simple advice:

Pick Important Problems, Fix Them and Tell Everyone

A good reporting system allows regulators to highlight what they have achieved. For example, Wage Inspectorate Victoria is able to use its reporting systems to produce an annual infographic to ‘tell everyone’ how they are performing in addressing the problems they are targeting. As Lily Dekic, Deputy Commissioner, outlined:

When we were establishing WIV we prioritised the development of a case management system (RegTech) – to develop a data and intel capability from the outset. And this has paid off, for example, during our hospitality sector campaign where we combined our own data, commissioned research and stakeholder feedback to target the 76 per cent of business employing children which did not have permits.

Regulators play a big role in keeping things transparent and honest by setting clear reporting rules, doing regular checks, and giving feedback. When regulators can be open and honest, it builds trust with everyone involved and makes the regulatory world work better.

To sum it up, great regulatory reporting means being responsive not reactive, understanding what is possible and what can be delivered, working as a team, being on time, and being transparent and accountable. By sticking to these basics and using technology to our advantage, regulators can boost the quality of our reporting, make our regulations stronger, and keep our markets fair and honest. 

Download the product brief to learn how Objective RegWorks can support effective regulatory reporting in your organisation today.