The Emergence of Risk-Based Regulation and the New Public Risk Management in the United Kingdom Julia Black* Reader in Law and member of the ESRC Centre for the Analysis of Risk and Regulation, London School of Economics and Political Science Introduction: risk-based regulation and the new public risk management ‘‘Risk’’ is fast becoming the central organising principle in regulation and public service delivery and central government in the United Kingdom is currently awash with initiatives to promote risk management. 1 Within the Cabinet Office at least 10 units are involved in giving guidance, training or advice on risk management across central government. 2 Within the Treasury, there are two main units and a plethora of sub-units charged with implement- ing risk management. 3 There is even a Minister for the Risk Programme. In a parallel development, ‘‘risk-based’’ regulation is also being advocated by central government, notably in the recent Budget, 4 the Hampton Review on regulation, 5 and by the National Audit Office and the Better Regulation * This article was written whilst on research leave funded by the ESRC’s grant to CARR, and I am grateful to the ESRC for their support. I thank those interviewed for giving generously of their time, and Bridget Hutter, Yuval Millo, Mike Power and Henry Rothstein for discussions which have helped develop some of the ideas expressed in this article. I am grateful to Milena Radoycheva for her research assistance in the early stages of this project. Last but not least, I thank Rob Baldwin and Mike Power for commenting on a previous draft of this paper. The views expressed, and responsibility for any errors and omissions, are my own. 1 See e.g. National Audit Office (‘‘NAO’’), Supporting Innovation: Managing Risk in Government Departments (HMSO, London, 2000); Cabinet Office, Successful IT: Modernising Government in Action (Cabinet Office, London, 2000); HM Treasury, Management of Risk: A Strategic Overview (HM Treasury, London, 2001) (‘‘the Orange Book’’); HM Treasury and Cabinet Office, Principles of Managing Risks to the Public (HM Treasury and Cabinet Office, London, 2003); Strategy Unit, Risk: Improving Government’s Capability to Handle Risk and Uncertainty (Cabinet Office, London, 2002); Office of Government Commerce, Management of Risk—Guidance for Practitioners (HMSO, London, 2002); Risk Support Team, Risk Management Assessment Framework (Cabinet Office, London, 2003). 2 These include the Strategy Unit, the Civil Contingencies Secretariat, the Corporate Development Group, the Delivery Unit, the Office of Public Service Reform, the Centre for Management and Policy Studies, the Civil Service Management Board, the Civil Service Corporate Management Command and the Implementation Steering Group (the latter joint with the Treasury). Details can be found on the Cabinet Office website: www.cabinet-office.gov.uk. 3 Principally the Risk Support Team and the Office of Government Commerce. 4 HM Treasury, Investing for our Future: Fairness and Opportunity for Britain’s Hardworking Families (HM Treasury, London, March 2005), para.3.32 (Budget 2005). 5 Philip Hampton, Reducing Administrative Burdens: Effective Inspection and Enforcement: Final Report (HM Treasury, London, March 2005) (‘‘Hampton Review’’). [2005] P.L. AUTUMN © SWEET & MAXWELL AND CONTRIBUTORS 510 Public Law