Society uses multiple mechanisms to control the risk of hazardous activities:
- regulation: technological or organizational prescriptions
- liability regimes such as tort law: obligation to compensate victims
- soft law and self-regulation: voluntary standards of behaviour associated with social sanctions for firms that do not engage in the process
- insurance to ensure that victims are compensated for the monetary component of a loss
This slideset describes these different mechanisms and attempts to answer:
what are the advantages and disadvantages of each mechanism?
to what extent are they complementary?
This submodule is a part of the risk management module.
Risk regulation, liability and insurance as risk treatment mechanisms
We recommend the following sources of further information on this topic:
OECD report Risk and Regulatory Policy: Improving the Governance of Risk, 2010
FonCSI report Risk regulation, liability and insurance: literature review of their influence on safety management, E. Marsden, 2014