The Council is responsible for issuing statements on government proposals and on their regulatory impact assessments. The Council may also issue statements on the impact assessments of other draft legislation, including significant decree-level provisions or the regulatory impact of EU legislation. The Council is not responsible for conducting impact assessments but it analyses proposed assessments and makes suggestions for improvements in impact assessments. The Council issues approximately 40 statements each year.

In law drafting, the impact analysis of a regulatory process yields information about the impacts of various regulatory options. The aim is to provide decision-makers with reliable information about the various regulatory options and their consequences. With good impact assessment, it is possible to produce better regulation.

The Council is an impartial and independent body. It selects the government proposals on which it will focus. The Council's work is based on issued and up-dated guidance on how to analyse the impact of bill drafting and legislative proposals.

The analyses are not binding on the ministries. If a government proposal has been considered in the Council of Regulatory Impact Analysis, a note of the procedure will be made under the item 'preparation of the matter'. The proposal must also include a mention of how the Council's statement has been taken into account. The statements issued by the Council are public.

During the initial phase of its operation, the Council focuses mainly on the economic impact evaluations of government proposals, but also other impacts assessed in the government proposals are analysed.. The Council may put forward proposals for improving the quality of bill drafting and, following the entry into force of statutes, assess whether the impact of legislation has been as intended. The Council will submit a report of its activities every year.