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Performance-Based Safety Regulation

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Many countries, including the United States, use forms of performance-based regulation to promote safety and reduce risk in high-hazard industries. The term “performance-based” is often used to refer to (a) standards that mandate outcomes and give firms flexibility in how to meet them, or (b) requirements for firms to use management systems consisting of internal plans and practices for promoting safety and reducing risk. Performance-based regulation is usually contrasted with “prescriptive” regulation – sometimes called specification, design, or technology standards – that requires firms to adopt specific means to promote safety and reduce risks.

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