The Office of Risk Assessment and Cost-Benefit Analysis (ORACBA) was established by the Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994 (P.L. 103-354, H.R.4271, Section 304). ORACBA began operation on April 15, 1995, in USDA's Office of the Chief Economist.

The Office of Risk Assessment and Cost-Benefit Analysis's (ORACBA) primary role is to ensure that major regulations proposed by USDA are based on sound scientific and economic analysis. A major regulation concerns human, health, safety or the environment and has an annual economic impact of at least $100 million in 1994 dollars. For such regulations, ORACBA conducts a thorough analysis that makes clear the nature of the risk, alternative ways of reducing it, the reasoning that justifies the proposed rule, and a comparison of the likely costs and benefits of reducing the risk.

ORACBA will provide guidance and technical assistance, coordinate risk analysis work across the Department, and certify that statutory requirements are met.