What does risk-based inspection management mean? It’s a regulatory enforcement activity that focuses on the importance and urgency of intervention against a set of risk criteria. In other words, risk-based inspection software prioritises cases imposing high risk on safety. The priority is being defined on risk factors. The risk factors vary depending on the area where the inspection is performed.
CASE STUDY: How a regulatory agency cut costs with resource scheduling software?
- reducing the scheduling time with up to 75%
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What’s challenging is finding the right approach to consider different risk factors and form a risk-focused inspection program. With many regulatory agencies on the road to adopting cloud-based digital infrastructures, the need for establishing an effective inspection model becomes more pressing. Reaping the benefits of digital transformation in regulatory inspections is possible when the inspection program is set up according to the best practices. So what is the right approach to adopt a risk-based inspection software?
Define inspection entities based on risk criteria
Each economic sector has its specifics. A clear distinction must be made between different regulatory areas and the nature of their inspection process.
What is the minimum inspection frequency for big facilities in populated areas? What is the minimum frequency for work safety inspections in big construction sites? Each economic sector must be defined by its specific risk factors. Once such a broad distinction is made, the minimum frequency of inspections must be determined; risk scoring methodology should be set, etc. The priority of inspection activities depends on local risk factors. This approach is used in France, Finland, Japan, and the United States.
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Prioritisation with a risk scoring system
What is a scoring system? The scoring system is based on a pre-defined point scale. The complexity of each inspection case is determined by a score that considers multiple risks. However, some risks have more weight than others. The scoring system reflects that and helps regulators increase the efficiency of inspections. Some of the countries using scoring systems in their inspection management programs are the UK and Netherlands.
Methodology for adopting risk-based inspection programs
If we were living in 1999, perhaps the best methodology would be to build an excel table and ask the inspector to assess the risk scoring manually. But we’re living in 2022, and technology is far more advanced now. The best methodology for adopting a risk-based inspection program is moving inspections onto cloud-based infrastructure and performing them digitally. With the digital gathering of inspection data, the inspection program can be easily transformed into a risk-based one according to the best international practices benchmarked by countries like the UK and Netherlands.
Transforming inspection management is a complex subject. Trying to sum it up would always result in oversimplification of some sort. Book a free consultation with our team, and we will explain to you in detail how to transform regulatory inspections according to the best international practices.