Reducing risk in professional ethics

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2. ETHICS
Ethics, also called moral philosophy, the discipline
concerned with what is morally good and bad and morally
right and wrong. The term is also applied to any system or
theory of moral values or principles.
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4. Risk
Any work which might lead to harm us and is not
considered safe, can be understood as a risk. According to a
popular definition, “A risk is the potential that something
unwanted and harmful may occur.” According to William D
Rowe, potential for the realization of unwanted consequences
from impending events.
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5. Cont..
Risk is a broad concept covering many different types of
unwanted occurrences. When it comes to technology, it can
equally well include dangers of bodily harm, of economic loss
or of environmental degradation. These in turn can be caused
by delayed job completion, faulty products or systems or
economically or environmentally injurious solutions to
technological problems.
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6. Acceptability of Risk
The acceptability of risk depends upon the types of risks
such as voluntary and involuntary risks, short term and long term
consequences, expected probability, reversible effects, threshold
levels for risk, delayed and immediate risk, etc
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7. Voluntarism and Control
The person who breaks a red signal, is prone to be a victim of
an accident, but risks. A person who lives near a dumping yard
is prone to ill-health, but neglects. A boy who rides a vehicle at
a high speed cannot rely on the perfect functioning of the
brakes. But these people take voluntary risks thinking they can
control.
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8. Effective information on Risk assessment
The acceptance of risks also depends on the manner in
which information necessary for decision making is presented. A
person can be motivated to violate the safety rules by explaining
the higher probability of success, whereas the same person can be
demotivated from such task, by explaining the probability of
failure and the fatal effects of it.
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9. Job-related Risks
In some jobs where the workers are exposed to
chemicals, radiations and poisonous gases etc., they are not
informed about the probable risks the workers would be facing,
in doing their jobs.
These are such dangers where the toxic environments cannot
readily be seen, smelled, heard or sensed otherwise.
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10. Magnitude and Proximity
It is unfortunate that most of us, realize the magnitude of risk only when
we ourselves or the person who is in our close proximity or a relative, gets
affected. A group of 20 friends including us, if gets affected or if had a
narrow escape from death, affects us more than the incident occurred to a
group of 50 strangers, in a group of a 1000. This proximity effect arises in
perceptions of risk over time as well.
A future risk is easily dismissed by various rationalizations including −
• The attitude of “out of sight, out of mind”.
• The assumption that predictions for the future must be discounted by
using lower probabilities.
• The belief that a counter-measure will be found in time.
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11. Risk Analysis
Some of step wise risk analysis includes-
• Hazards identification
• Failure modes and frequencies evaluation from established sources
and best practices.
• Selection of credible scenarios and risks.
• Fault and event trees for various scenarios.
• Consequences-effect calculations with work out from models.
• Individual and societal risks.
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12. Risk Benefit Analysis
As per the famous saying, “A Ship in harbor is safe. But that’s not what
ships are built for” risk is somewhat common to be accepted. The most
common risk we all take is driving an automobile in a traffic.
Though we are not sure about the perfect functionality of the brake
system and the timings of other drivers’ responses, we take risk. The
controlling factor appears to be their perception of their individual
ability to manage the risk-creating situation.
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13. Types of risk
The risk to be occurred in future is completely known after it gets fully
developed. It is called as Real future risk.
If the idea of risk is developed using current data, such one is called as
Statistical risk.
The risk which is analytically based on system models structured from
historical studies is called as Projected risk.
The risk which is intuitively seen by individuals is called as Perceived
risk.
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14. Example
If risks of traveling on an air-plane is considered for observation, then
the flight insurance company can observe it as a statistical risk, while
the risk the passenger faces is Perceived Risk and the Federal aviation
administration, faces a Projected risk.
Hence, the view of accepting the risk and the idea of risk to benefit
ratio motivates the individual.
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15. Risk Reduction
Risk reduction is one of the four main risk management techniques to be
used in conjunction with other techniques to help an individual or
organization effectively manage the risk of loss.
Risk reduction refers to the way an insurance company or organization
can reduce its financial losses by implementing measures that reduce the
financial impacts of potential losses.
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16. Some examples of common and effective risk reduction practices
include:
• Installing security systems or alarms to reduce the frequency of crime
losses.
• Installing sprinklers and smoke detectors to reduce the amount of
damage a fire loss can cause.
Risk reduction is also sometimes called loss mitigation.
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17. The risks we generally face can be reduced to a great extent by proper
analysis with steps. as mentioned below −
• Define the Problem.
• Generate Several Solutions.
• Analyze each solution to determine the pros and cons of each.
• Test the solutions.
• Select the best solution.
• Implement the chosen solution.
• Analyze the risk in the chosen solution.
• Try to solve or move to next solution.
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18. Examples of risk reduction are:
• medical care,
• fire departments,
• night security guards,
• sprinkler systems,
• burglar alarms
—attempts to deal with risk by preventing the loss or reducing the chance
that it will occur.
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19. Risk Avoidance vs. Risk Reduction
Risk Avoidance
Risk avoidance is not performing
any activity that may carry risk. A
risk avoidance methodology
attempts to minimize vulnerabilities
that can pose a threat.
Risk avoidance is the elimination of
hazards, activities and exposures
that can negatively affect an
organization's assets.
Risk Reduction
Risk reduction is a risk
management technique that
involves reducing the financial
consequences of a loss.
This encompasses a whole range of
things including reducing the
seriousness of a loss, reducing its
frequency, or making it less likely
to occur overall.
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