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  • 2009
  • Chapter
  • New Perspectives on Regulation

Government as Risk Manager

By: Tom Baker and David Moss
  • Format:Print
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Abstract

We explain the four basic ways to manage risk: prevention, risk shifting, risk spreading, and loss control. We set out five principles of effective government risk management gleaned from extensive historical study: (1) link responsibility and control, (2) manage moral hazard, (3) pool risk in sound institutions, (4) adopt market conforming approaches to the extent possible, and (5) structure markets to promote safe products. Finally, we describe some promising new government risk management ideas that incorporate these principles.

Keywords

Government and Politics; Risk Management; Risk and Uncertainty; Safety

Citation

Baker, Tom, and David Moss. "Government as Risk Manager." Chap. 4 in New Perspectives on Regulation, edited by David Moss and John Cisternino, 87–109. Cambridge, MA: Tobin Project, 2009.
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About The Author

David A. Moss

Business, Government and the International Economy
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More from the Authors
  • The U.S. Secession Crisis as a Breakdown of Democracy By: Dean Grodzins and David Moss
  • When Democracy Breaks: Studies in Democratic Erosion and Collapse, from Ancient Athens to the Present Day By: Archon Fung, David Moss and Odd Arne Westad
  • The U.S. Secession Crisis as a Breakdown of Democracy By: David Moss and Dean Grodzins
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