Defining risk

Abstract

Risk is the focal topic in the management of many activities and technologies. For that management to be successful, an explicit and accepted definition of the term "risk" is essential. Creation of that definition is a political act, expressing the definers' values regarding the relative importance of different possible adverse consequences for a particular decision. Those values, and with them the definition of risk, can change with changes in the decisionmaker, the technologies considered, or the decision problem. After a review of the sources of controversy in defining risk, a general framework is developed, showing how these value issues can be systematically addressed. As an example, the approach is applied to characterizing the risks of six competing energy technologies, the relative riskeness of which depends upon the particular definition used.

Project, Program and Portfolio Risk Perceptions

“…[14] demonstrated that Project stakeholders tend to overemphasize the ‗consequence' aspect of risk leaving aside the ‗probability' dimension. This result was consistent with a research by [23] which identified that risk is more about the consequence than the unpredictability of the outcomes. [14] found that Project stakeholders in defining risk tend to over-focus on the negative sides while the rational decision theory would suggest a more neutral view.…”

Differences in the Perceived Influence of Natural Disasters and Travel Risk on International Travel

“…Travel risk is defined as the possibility of experiencing a danger while engaging in travel (Fischhoff et al 1984) or the consciousness of security and knowledge of the likelihood of damage during travel (Wogalter et al 1999). Travel risk is perceived and experienced by tourists during the process of purchasing and consuming travel services (Tsaur et al 1997).…”

Are people acting irrationally? Understanding public concerns about environmental threats.

“…To measure quantitatively how risky something is, it is necessary to identify its adverse effects on those things that individuals consider to be valuable . But science provides no special insights into what society should value (Fischhoff, Watson, & Hope, 1984).…”