The process of deciding which regulatory action to take regarding specific risks is called:
A) risk assessment.
B) contingent valuation.
C) cost-benefit analysis.
D) risk management.

Question

Quizplus · Accepted Answer

Risk management involves evaluating the risks and deciding on the most appropriate course of action, which may include implementing regulations to mitigate those risks. Risk assessment (A) is a component of risk management, but does not refer specifically to the decision-making process. Contingent valuation (B) is a method for determining the economic value of goods and services not traded in markets, and is not directly related to regulatory decision-making. Cost-benefit analysis (C) is another aspect of risk management, but specifically focuses on evaluating the costs and benefits of different regulatory options, rather than the overall decision-making process.

The Process of Deciding Which Regulatory Action to Take Regarding