INDUSTRIAL RISK MANAGEMENT AND UNCERTAINTY
The uncertainties of risk analysis have been explored to the extent that the major sources have been identified, they are seen as being primarily technical and scientific in nature, and they are recognized as being worthy research topics. However the risk literature has often failed to draw a clear distinction between risk analysis and risk management, there has been some internalization of the decision maker, an implicit assumption that risk management outcomes should approximate analytical results. Those factors which cause risk management to differ from those that analysis would favour are often lumped together under the global heading of irrationality, although they might better be viewed as uncertainties which should be identified and understood. One of the obvious differences between risk analysis and real world risk management is that risk analysis, in effect, deals with hypothetical risks and can assume a single, axiom equipped decision maker who has procedures for handling uncertainties. Management, however, involves negotiations amongst several actors and it treats real risks because the kind, magnitude and distribution of the risks to which society is actually exposed are an end result of regulatory processes which determine what standards are set and how they are monitored, implemented and enforced. This paper, which is based upon work in progress at the JRC, identifies and discusses the non-analytical factors which influence the style, structure and content of industrial risks management.
Bibliographic Reference: ANNUAL MEETING OF THE INTERNATIONAL SOCIETY FOR RISK ANALYSIS, KNOXVILLE, TENNESSEE (USA), SEPT. 30-OCT. 5, 1984 WRITE TO CEC LUXEMBOURG, DG XIII/A2, POB 1907 MENTIONING E 31644 ORA
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Record Number: 1989123003900 / Last updated on: 1987-01-01
Available languages: en