Government regulations, public perception

Moreover, there is general public recognition that while the costs of government regulation increase business costs, those costs are passed on to the consumer. Table II reveals that this perception has been relatively unchanged over the last six years. 

These differing perceptions impact what risk management decisions are acceptable in different situations. The perceptions relate to psychological factors such as fear, dread, uncontrollability, and voluntary versus involuntary risks, as well as familiarity with the hazard. Figure 9.1 illustrates the relationship of these factors for various hazards. Hazards in the upper right quadrant of the space are those that are perceived as both relatively unknown and uncontrollable, and include asbestos, mercury, pesticides, and radioactive waste. The hazards in this quadrant are most likely to be considered most dreadful, and are most likely to lead to government regulation based on public concern. 

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