Your SlideShare is downloading. ×
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Session 21  Power Point
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Session 21 Power Point

312

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
312
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Risk Acceptability Safe does not necessarily mean ‘free from risk’
  • 2. Most Risks have Associated Benefits
  • 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. Factors that Determine Risk Acceptability
    • Personal
    • Political / Social
    • Economic
  • 5. Injustices
    • The process of determining the acceptability of risk can be influenced by those with money and vested interests.
    • Setting a dollar figure (in cost-benefit analyses) on a human life is considered by many to be unethical and unconscionable.
    • 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.
  • 6. Risk Acceptability Assessment Methods
    • “ No Go” Alternative
    • Accept the Risk
    • Establish a “De Minimis Risk” Level
    • Establish a “De Manifestis Risk” Level
    • Perform a Cost-Benefit Analysis
    • Perform Cost Effectiveness
    • Choose the Best Choice Among Alternatives
  • 7. Derby and Keeney’s 5 Steps
    • Define the alternatives
    • Specify the objectives and measures of effectiveness to indicate the degree to which they are achieved
    • Identify the possible consequences of each alternative
    • Quantify the values for the various consequences
    • Analyze the alternatives to select the best choice
    Source: Derby and Keeney, 1981
  • 8. Example A 0 RISK 0 COST
    • K
    • L
    *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. Example B 0 RISK 0 COST
    • K
    • L
    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. Example C 0 RISK 0 COST
    • K
    • L
    *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. Example D 0 RISK 0 COST
    • K
    • L
    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.

×