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The problem I was alluding to is that this would radically change the risk management aspects of a business. There is a certain amount of subjectivity in regula
by gwright 11y ago
The problem I was alluding to is that this would radically change the risk management aspects of a business. There is a certain amount of subjectivity in regulatory frameworks. An honest business decision may trigger a fine due to interpretation of the regulation or even unforeseen complications. There are a variety of tools to manage financial risk (e.g. insurance) that businesses are very familiar with.
If you convert these civil violations into criminal violations those risk management techniques don't apply. You can't purchase insurance that sends someone else to jail if you are found in criminal violation of a regulation.
So what I was suggesting was that criminalizing regulatory violations would make companies highly risk adverse as well as giving regulators really big sticks to force concessions. Changing the business environment in such an extreme way is going to have lots of unintended consequences.