Effective risk management sometimes leads to new laws and regulations. This can be great, like when workplace safety regulations addressed and eased horrific factory working conditions in the early 20th century. But over time, society changes, and regulations originally designed to achieve a laudable goal can also grow and change, becoming more complex until the regulations begin detracting from companies’ core businesses without actually reducing risk. The costs begin to outweigh the benefits.
When Controls Get Out of Control
When Controls Get Out of Control
When Controls Get Out of Control
Effective risk management sometimes leads to new laws and regulations. This can be great, like when workplace safety regulations addressed and eased horrific factory working conditions in the early 20th century. But over time, society changes, and regulations originally designed to achieve a laudable goal can also grow and change, becoming more complex until the regulations begin detracting from companies’ core businesses without actually reducing risk. The costs begin to outweigh the benefits.