Risk Assessment in Regulation Economics

Risk assessment in regulatory economics involves identifying, evaluating, and prioritizing potential risks that could impact public health, safety, or the environment due to economic activities. It assesses the likelihood and consequences of adverse outcomes, helping regulators make informed decisions about policies and regulations. By analyzing risks, authorities can allocate resources effectively, establish safety standards, and implement measures to mitigate negative impacts, ensuring a balance between economic growth and public welfare. This process is crucial for protecting communities while fostering responsible development.