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Currently, when you carry out task Foo, you perform steps A, B, C and D. Regulation is introduced which says you cannot under any circumstances omit step C. No
by PaulDavisThe1st 3y ago
Currently, when you carry out task Foo, you perform steps A, B, C and D. Regulation is introduced which says you cannot under any circumstances omit step C.
No increase in expenses.
- mulmen 3y agoLet’s label the steps. 1) acquire airplanes 2) acquire pilots 3) plan routes 4) set prices 5) acquire customers Seems to me regulations that set prices actually save a step.
- julienb_sea 3y agoEven if no one is skipping step C, the enforcement mechanism requires auditing. If there exists an alternative to step C, is it compliant with the regulatory requirement? The regulation itself introduces legal risk which needs to be mitigated. So yes, it increases expenses.
- PaulDavisThe1st 3y agoThose expenses are on the part of the regulator, which is funded differently. As a society, we may be paying more to say "you must do step C", but as a customer or provider of Foo, there's no change.
- riatin 3y agoNo? Entities don't get to write off the cost of being audited, there's a very real expense associated with both documenting the regulated process in a compliant manner and working through the audit process with the relevant regulatory body.
- PaulDavisThe1st 3y agoEntirely fair point.