The Benefit-Cost Analysis of Security Focused Regulations
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Author/Creator
Author/Creator ORCID
Date
2009-04-18
Type of Work
Department
Program
Citation of Original Publication
Farrow, Scott; Shapiro, Stuart; The Benefit-Cost Analysis of Security Focused Regulations; Journal of Homeland Security and Emergency Management, 6, 1, 18 April, 2009; https://doi.org/10.2202/1547-7355.1482
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Subjects
Abstract
Security focused regulations have been largely exempt from the benefit-cost type
of analysis required for major Federal regulations and done routinely in areas such
as transportation, environment and safety. Among the reasons offered for
exemption are the analytical difficulties of security issues involving complex or
poorly understood probabilities and consequences. This paper investigates the
magnitude of security focused regulations, a framework for developing an
expected costs analysis of regulations, and the current “break-even” analysis used
by the Department of Homeland Security. Key assumptions implicit in the
current analysis are identified and suggestions are made for the difficult evolution
of security regulations toward a more explicit benefit-cost analysis.