LAW 534 Lecture Notes - Lecture 2: Precautionary Principle, Nuclear Weapon, Horizontal Integration
2 Feb 2015
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Document Summary
Free market is not really a free market because everything that happens in a market is government regulated. Failure in risk management during a shift: regulatory failure- failed to identify and manage risks associated with privatization. Lessons include privatization should be accompanied by regulation (government shouldn"t leave: where human health/environment are at stake, expert analysis should be present. 2 types of risk: societal harm: what is good for society (as a whole, risk of non-compliance: what is good for our business (individual basis) Regulation was coming under attack in the 1970"s: risk= probability x gravity consequence. Regulatory capture (1-16. 10: when regulators become to be dominated by the industries, which they are regulating, regulator and regulated become to close to each other; their collective relationship will lead to consequences. Risk analysis (1-16. 11) - 3 stages: risk assessment, scientific assessment of true risk, which is converted into code of regulations, identifying the potential hazard.
