Risk Acceptability Safe does not necessarily mean ‘free from risk’
Most Risks have Associated Benefits
“Acceptable risk is the risk associated with the best of available alternatives, not with the best of alternatives which w...
Factors that Determine Risk Acceptability <ul><li>Personal </li></ul><ul><li>Political / Social </li></ul><ul><li>Economic...
Injustices <ul><li>The process of determining the acceptability of risk can be influenced by those with money and vested i...
Risk Acceptability Assessment Methods <ul><li>“ No Go” Alternative </li></ul><ul><li>Accept the Risk </li></ul><ul><li>Est...
Derby and Keeney’s 5 Steps <ul><li>Define the  alternatives   </li></ul><ul><li>Specify the  objectives  and measures of  ...
Example A 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>*M Source:  Derby, Stephen L., Ralph L. Keeney. 1981.  Ris...
Example B 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>Minimum Risk Minimum Cost Source:  Derby, Stephen L., Ralp...
Example C 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>*M * Source:  Derby, Stephen L., Ralph L. Keeney. 1981.  R...
Example D 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>Case 1 Case 2 Source:  Derby, Stephen L., Ralph L. Keeney....
Upcoming SlideShare
Loading in...5
×

Session 21 Power Point

332

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
332
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Session 21 Power Point

  1. 1. Risk Acceptability Safe does not necessarily mean ‘free from risk’
  2. 2. Most Risks have Associated Benefits
  3. 3. “Acceptable risk is the risk associated with the best of available alternatives, not with the best of alternatives which we would hope to have available.” Source: Derby, Stephen L., and Ralph L. Keeney, 1981.
  4. 4. Factors that Determine Risk Acceptability <ul><li>Personal </li></ul><ul><li>Political / Social </li></ul><ul><li>Economic </li></ul>
  5. 5. Injustices <ul><li>The process of determining the acceptability of risk can be influenced by those with money and vested interests. </li></ul><ul><li>Setting a dollar figure (in cost-benefit analyses) on a human life is considered by many to be unethical and unconscionable. </li></ul><ul><li>Risk management is usually an undemocratic process, as those who may be harmed are not identified or asked if the danger is acceptable to them. </li></ul>
  6. 6. Risk Acceptability Assessment Methods <ul><li>“ No Go” Alternative </li></ul><ul><li>Accept the Risk </li></ul><ul><li>Establish a “De Minimis Risk” Level </li></ul><ul><li>Establish a “De Manifestis Risk” Level </li></ul><ul><li>Perform a Cost-Benefit Analysis </li></ul><ul><li>Perform Cost Effectiveness </li></ul><ul><li>Choose the Best Choice Among Alternatives </li></ul>
  7. 7. Derby and Keeney’s 5 Steps <ul><li>Define the alternatives </li></ul><ul><li>Specify the objectives and measures of effectiveness to indicate the degree to which they are achieved </li></ul><ul><li>Identify the possible consequences of each alternative </li></ul><ul><li>Quantify the values for the various consequences </li></ul><ul><li>Analyze the alternatives to select the best choice </li></ul>Source: Derby and Keeney, 1981
  8. 8. Example A 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>*M Source: Derby, Stephen L., Ralph L. Keeney. 1981. Risk Analysis: Understanding “How Safe Is Safe Enough?” Risk Analysis. V.1. No.3. Pp.217-224.
  9. 9. Example B 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>Minimum Risk Minimum Cost Source: Derby, Stephen L., Ralph L. Keeney. 1981. Risk Analysis: Understanding “How Safe Is Safe Enough?” Risk Analysis. V.1. No.3. Pp.217-224.
  10. 10. Example C 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>*M * Source: Derby, Stephen L., Ralph L. Keeney. 1981. Risk Analysis: Understanding “How Safe Is Safe Enough?” Risk Analysis. V.1. No.3. Pp.217-224.
  11. 11. Example D 0 RISK 0 COST <ul><li>K </li></ul><ul><li>L </li></ul>Case 1 Case 2 Source: Derby, Stephen L., Ralph L. Keeney. 1981. Risk Analysis: Understanding “How Safe Is Safe Enough?” Risk Analysis. V.1. No.3. Pp.217-224.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×