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Business Impact Assessment

Business Impact Assessment

Another work focus of business facilitation is to encourage bureaux and departments (B/Ds) to assess the business impact before introducing new regulatory/licensing requirements so as to better take into consideration the operational circumstances and capacity of the trades and understand the costs associated with compliance of the regulatory requirements.

Through conducting business impact assessments (BIAs), B/Ds can grasp the concerns and compliance difficulties of the affected trades in complying with the regulatory proposals which will facilitate the B/Ds to enhance or fine-tune their regulatory proposals so as to avoid the introduction of unreasonable regulatory or licensing requirements and reduce the compliance cost without compromising public interests.

Business Impact Assessment

Business Impact Assessment Framework and tasks under different stages

The Government has developed a BIA framework to provide general guidelines to B/Ds to facilitate their systematic assessment of the business impact of their regulatory proposals on the business environment.

The different tasks under the different stages of the BIA Framework are depicted below –

Stage 1: Review of Government Intervention & Options Expand Collapse

Understand problem, desired outcome and regulatory proposal

Review rationale for government intervention

Conduct research on overseas best practices and international standards

Identify options (e.g. non-regulatory option)

Analyse industry / business structure and value chain

Analyse industry / business structure and value chain

Assess affected business segments

Assess affected business segments

Identify major business stakeholders groups

Identify major business stakeholders groups

Design business consultation

Design business consultation

Conduct business consultation

Conduct business consultation

Assess benefits to business, compliance difficulties, cost of compliance and administrative burden

Assess benefits to business, compliance difficulties, cost of compliance and administrative burden

Assess impact on competition and small and medium-sized firms

Assess impact on competition and small and medium-sized firms

Identify important issues from an industry perspective that the Government needs to consider or address. Identify key challenges faced by the industry on compliance issues and any unintended consequences

Identify important issues from an industry perspective that the Government needs to consider or address. Identify key challenges faced by the industry on compliance issues and any unintended consequences

Consolidate analysis of impact assessment findings

Consolidate analysis of impact assessment findings

Propose changes to regulatory proposal (including recommendations on mitigation measures, enforcement strategy and approach, and monitoring and evaluation mechanism)

Propose changes to regulatory proposal (including recommendations on mitigation measures, enforcement strategy and approach, and monitoring and evaluation mechanism)

Business Compliance Cost (BCC) Framework

In addition, the Government has developed the Business Compliance Cost (BCC) Framework for assessing the additional compliance cost to be incurred from the regulatory proposals to facilitate B/Ds to estimate the BCC in a systematic and consistent manner.

An overview of the BCC Framework is as follows -

Business Compliance Cost (BCC) Framework


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