Table 1

Tiers of regulation (Gilad, 2010, p. 490)

Tier of regulationFocus of regulationRegulatory standardsType of regulation
FirstOrganisations' core production and operationsPrescribed actions, output specifications or principles that control and constitute firms' production processesPrescriptive or outcome-oriented regulation
SecondOrganisations' compliance systemsSystem-oriented specifications that direct organisations' governance and control of their compliance with first-tier specificationsControls-based regulation
ThirdOrganisations' self-evaluationProcess-oriented specifications that guide organisations' analysis of the risks that their operations pose to regulatory objectives and their setting of first- and second-tier specificationsProcess-oriented regulation

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