On the path to create a unison approach to Systemic Risk-Based Compliance – laying the foundation

Abstract

Our modern globalized civilization is facing a range of systemic risks related to climate, crime, health and more. During the last decade the EU has enhanced the use of risk-based regulation to address some of these societal risk issues that have cross-border and even regional affects, with the aim of creating a incentive-based compliance structure for both private and public entities. The purpose of this paper is to establish the foundation to create a unison approach to Systemic Risk-Based Compliance by investigating the two core elements behind the systemic societal risks facing the modern democracy within the EU, the risk-based approach, and risk-based regulation.

Keywords: Risk-based approach, risk-based regulation, systemic risks, risk-based compliance

JEL Classification: D80, D81, G18