LAWS 4801 Lecture Notes - Lecture 3: Dutch Americans, Risk Management, Vehicle Insurance
Document Summary
Once you decide to manage risk, you then have to engage in behaviour modification. Behaviour modification by public authorities can be achieved with three risk management strategy tools: 1) regulation, 2) taxation, 3) education. Regulation means enshrining the desired behaviour in law and prescribing. The selection of the strategy to change behaviour can be influenced by interest groups. Corporate front groups pretend to be uninterested experts, spreading information about an issue of concern to an industry and advocating its position on public interest issues. Wildavsky: risk management decreases production, innovation and resiliency (right edge of the spectrum that argues against risk reduction) Bruce and weissenberger: critique the paper in favour of no-fault automobile insurance - author finds holes in no-fault insurance as compared to the regulatory scheme that hubbard discusses. The legal environment of a jurisdiction balances regulation and innovation, and is based on the existing culture of risk tolerance in that society.