RIA is a method of evaluating probable effects of a new regulation or regulatory change(s). The method embraces a process based on a series of steps to answer in systematic ways if a new regulation or the altered existing one would produce the desired effect. In the course of this process the following are identified: the potential effects of the proposed change(s); the likely costs of implementation and compliance to be borne by individuals and businesses, quantified whenever possible; and the cost of implementation of such a new or amended regulation to Public Administration, as well.
Apart from a systematic and consistent assessment of the potential end effects, RIA is a means of information for decision makers and stakeholders on RIA results. RIA makes passing of regulations whose benefits exceed their costs possible, as it provides for the implementation of the least costly option.
The application of RIA sets in motion the following: