Question

Are certain industries subject to more regulatory oversight and risk than others? If not, why not? If so, what industries or businesses come to mind?

Answer 1

Yes, certain industries are subject to more regulatory oversight and risk than others because of its nature of business and its impact on environment. For example mining industries are subject to more regulatory oversight and risk than other industries as the workers serving to the industry are exposed to higher risk and due to regulatory oversight the companies are made responsible to make the arrangements for the safeguard of its employees and if they failed to doing so, they have to bear the cost of negligence. The firms have to provide the worker’s compensation to their employees therefore they can become more careful about the risky work environment at the work location and try to reduce it to the maximum possible extent otherwise they have to bear the cost of high workers’ compensation.

Because of regulatory oversight many companies are taking initiatives to reduce its energy consumption as it will reduce carbon dioxide emissions and protect the environment from its bad impact on the surroundings. Climate protection and conservation of natural resources are the major challenges therefore more regulatory oversight are required for the companies in risky businesses.