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Governance Coordination Cost

Incentive Asymmetry

Definition

The structural dynamic whereby adding governance layers is individually rational while removing them carries asymmetric personal and political risk. This creates a governance ratchet effect where oversight can only grow.

Example

A compliance officer who recommends removing a redundant review process risks being blamed if anything goes wrong. But recommending an additional review carries no personal risk—asymmetry ensures layers only accumulate.

Source

GCC Section 8.1

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Related Terms from Governance Coordination Cost

Governance Coordination Cost (GCC)

Authority FragmentationA

Governance LayeringL

Compliance Surface AreaC

Necessary Governance Cost

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