The Latest OECD Regulatory Policy Outlook for 2025

The latest OECD Regulatory Policy Outlook for 2025 highlights more inclusive stakeholder engagement practices and providing more to support innovation in society among their recommendations for strengthening regulatory policy over the next year.

The fourth edition of the Outlook Report shares unique data from the OECD indicators on regulatory policy and governance, which informs new guidance for governments to improve their regulations. This short article summarises the 2025 Outlook, identifying the key takeaways and recommendations moving forward.

Takeaways from the data:

1. Stakeholder engagement could be more inclusive, and providing feedback remains a challenge

Consultations on new draft regulatory policy is commonly practiced across the OECD member countries, however it is less common for countries to engage more broadly with stakeholders when an issue arises within an existing regulatory policy. Most member countries are more selective with who they engage in these scenarios, as opposed to being more inclusive. Lastly, stakeholders want to know how they have positively contributed to better rule-making, yet only one-third of OECD Members provide feedback post consultation.

2. Embedding risk-based approaches to regulatory policy can improve outcomes

Risks can, and often will, present themselves throughout the implementation of new regulation. Whether it is in the guidance, monitoring, compliance or enforcement stage, governments should better measure the likelihood of potential risks to ensure resources and time are spent minimising higher-risk activities over lower ones and better outcomes are achieved.

3. Governments can strengthen their regulatory policy to support innovation in society

Most Governments are struggling to keep up with the innovations that are shaping societies and economies today. Most rule-makers need to bolster their efforts to increase the flexibility and scope when drafting interventions, in the form of experimentation, sandboxes, and alternative non-regulatory approaches

What can governments do?

1. Adopt regulatory reviews to revise and strengthen government policies

The more traditional rule-making approach of “set and forget” removes any opportunity to continuously adapt and improve a new regulation to achieve its objectives. Determining and monitoring success factors needs to begin during the early regulatory design phase. To strengthen this further, stronger stakeholder engagement enables a better understanding of actual impact and will help identify any warranted changes.

2. Remove unnecessary costs and burdens while protecting against risks

Fast technological changes can assist growing demands for government to be adaptive, efficient and proportionate in regulatory framework design. Governments should utilise these advancements to make it easier for people to access information and services, and for business to comply, while maintaining protections and a competitive environment.

3. Improve regulatory effectiveness through risk-based approaches

Data and risk analysis help identify areas where the harms from non-compliance are greatest and assist in predicting where non-compliance may occur. The results mean resources can be allocated more efficiently to have more positive outcomes. Additionally, technologies, including AI support, offer new potential for risk-based enforcement.

4. Improve the understanding of inequality in regulation

Distributional analysis, which examines data across age, race, gender, education levels, and geographic factors, provides a path to better understand the cumulative inequalities people face. There are currently high levels of inequality throughout regulation, which only strengthens the case for improving distributional analysis in regulatory policy.

5. Better harness agile regulatory governance

Agile regulatory techniques, such as adapt and learn approaches, horizon scanning and strategic foresight, can help regulate for the future and foster more coherent and cohesive policies. Boosting these skills, expertise and resources yields sound evidence for improved decision making.

If you want to enhance your understanding of the OECDs recommendations and equip yourself with the techniques to become a more effective regulator, join our Strategic Regulation Masterclass. The 3-day training course will empower you to apply agile regulatory techniques in your regulatory work, strengthen your effectiveness through a risk-based approach, and improve your stakeholder engagement practices to better inform regulatory responses.

To read the full OECD report: https://www.oecd.org/en/publications/2025/04/oecd-regulatory-policy-outlook-2025_a754bf4c.html