What is risk compensation?
Risk compensation usually concerns the observed human behavior in which a person responds to a perceived reduction in risk by acting in a way that is less safe. This is often discussed in terms of safety features on motor vehicles, and many automotive companies are considering how this behavior can affect the real safety of the vehicle. The general way in which this type of compensation works is that the person essentially has unconsciousness of the risk that tolerates, because the perceived risk decreases, then the personal risks can increase appropriately. Risk compensation can also be used to free reference to compensation provided to employees or managers without the risks. Much of the theory has resulted in the research of the use of automotive and cycling safety equipment with a revelation that even though such vehicles became more safer, the number of aciproma and injury in general remained the same. This is attributed to the idea of risk compensation. Basic theory states that people are willing to accept uthe risky amount of risk at the subconscious level; For example, as perceived risks decrease, for example, the development of increased safety equipment will actually become risky.
Risk compensation is often used in the automotive industry, although it can be used for other businesses. Although many vehicles are designed to be much safer than ever before, research seems to indicate that this only leads to drivers risk more risks and ruthlessly ride. This has led to a great debate on the efficiency of safety equipment and standards for vehicles, as few practical evidence supports that these features actually save lives or reduce injuries. Risk compensation can also be observed in terms of bicyclists, as it has been recorded that drivers use more chances and drive closer to cyclists who wear helmets.
The term 'risk compensation' can also be used in business procentered in a looser way. This use often applies to financial compensation provided to employees or managers regardless of the risks and any failure that can be observed. Although this type of risk compensation does not have an impact on all businesses, it is often seen in managers or corporate officers who risk, which will lose money for employees or investors, but still receive standard compensation. This type of behavior is often frown with consumers and the public in general, although it can be considered a way to support innovative risks that can benefit society.