Regulatory impact assessment (RIA)

A regulatory impact assessment (RIA) is the structured appraisal a government or regulator carries out before adopting a rule: what problem it addresses, which options exist, and what each would cost and deliver, and for whom. In the European Union, Commission impact assessments "examine whether there is a need for EU action and analyse the possible impacts of available solutions." They are prepared before the Commission finalizes a proposal, checked by the independent Regulatory Scrutiny Board, and published with the proposal.

In the United States the equivalent is called a regulatory impact analysis. Executive Order 12866 requires one for economically significant rules, OMB Circular A-4 sets out the method, and the Office of Information and Regulatory Affairs summarizes the required elements in its primer. On 12 February 2025, OMB memorandum M-25-15 revoked the November 2023 revision of Circular A-4 and reinstated the September 2003 version.

An RIA is not the same document as a regulatory change impact assessment. The rule-maker writes the RIA to decide whether and how to regulate. A regulated firm writes a change impact assessment after the rule exists, to decide what it must do, by when and who owns it.

Firms still have good reasons to read RIAs. Published alongside a proposal or consultation paper, an RIA shows which entities the rule-maker expects to be in scope, the compliance costs it anticipates and the options it rejected, often years before the final text applies. That makes it useful input for regulatory horizon scanning and for consultation responses, where evidence on real compliance costs is among the most useful things a respondent can offer.

For how the two documents differ in practice, see our regulatory change impact assessment template.

This entry is general information, not legal advice.