Risk-based or Hazard-based Regulation

Posted by riskmonger on May 4, 2016

Posted by riskmonger on May 4, 2016May 4, 2016

Originally published on 27 August 2015 – Re-posted for the Risk School series

This is a three-part blog. In part one I look at the irrationality of hazard-based regulation. In the next blog, I will identify the type of person who promotes it – someone I will call the “contrapreneur”. Finally, their success will be explained as only possible in a vision-less world where expediency is the political virtue.

Today, no doubt, most of us have managed the following risks:

• Controlling the exposure to injury from falling down stairs by using the hand-rail or taking care
• Reducing exposure to obesity and other health risks by limiting calorie intake
• Avoiding exposure to a car accident by stopping at a red light

Risk-management is ubiquitous. From the moment we get up to after we fall asleep, we are managing our exposure to hazards with every decision we take. The formula is very simple:

Risk = Hazard X Exposure..........To Read More....