TRC => DM (KI + RA) + RCS Theory of Regulatory Compliance Algorithm

The Theory of Regulatory Compliance Algorithm in the header (TRC => DM (KI + RA) + RCS) needs some context and explanation. Let’s start with the abbreviations first: TRC = Theory of Regulatory Compliance, DM = Differential Monitoring, KI = Key Indicators, RA = Risk Assessment, and RCS = Regulatory Compliance Scale. This algorithm describes the relationship between the theory and its resultant monitoring approach and regulatory compliance scale.

The theory of regulatory compliance was first proposed in the 1980’s, specifically in 1985 in an article published in the New England Journal of Human Services. In this article, the theory introduced the importance of substantial regulatory compliance as an equal decision making level as full 100% regulatory compliance when issuing licenses in early care and education programs. The theory has now been validated in several additional studies since that initial study back in the 1980’s.

Without the theory of regulatory compliance, differential monitoring which leads to abbreviated inspections when conducting licensing reviews would not be possible. If it had been determined that full and not substantial regulatory compliance was the key determiner of quality then differential monitoring would not be an acceptable monitoring approach. The resultant differential monitoring approach was also first proposed in 1985 in an article published in Child Care Quarterly. In that article, based upon the theory of regulatory compliance, differential monitoring and key indicators were proposed via a risk assessment scoring system. The article provides a blueprint for moving from a uniform monitoring system to a differential monitoring system.

The Regulatory Compliance Scale (RCS) is a relatively new addition in that it has emerged from the theory of regulatory compliance because of the limitations in regulatory compliance violation data. The RCS introduces an ordinal scale metric which appears to be more in line with the overall theory building upon the importance of substantial regulatory compliance.

These publications are available on the Research Institute for Key Indicators website https://rikinstitute.com/publications for those interested readers.

TRC => DM (KI + RA) + RCS

The Theory of Regulatory Compliance Algorithm