Developing realistic scenarios for the environment: Lessons from Brent Spar

Why did Shell—renowned for its scenario planning—find itself so badly adrift with the Brent Spar? And why, later in 1995, was it wrong-footed again in Nigeria? The answers reflect deep currents already clear to the company's scenario writers in the 1980s, but retaining their ability to surprise. The authors conclude that Shell's scenarios have been ‘individualist’, ‘hierarchist’ or some combination of the two; none have adopted an ‘egalitarian perspective’. They also suggest that the ‘Values Shift’ scenario—developed for European Partners for the Environment—may hold clues to future shifts in business strategy.     

Corporate planning as a control system in United Kingdom nationalized industries

Since the late 1960s some U.K. nationalized industries have undertaken corporate planning as a means of exercising control. In the early 1970s, the U.K. Government, on the advice of one of its select committees, required that all U.K. nationalized industries undertake corporate planning. This requirement has been reinforced through a White Paper in 1978, in which the government reiterated that it saw corporate planning as a major instrument of control both for the nationalized industries themselves, and also for government in its relationships with the industries.This paper examines the development of corporate planning in nationalized industries. The findings are based on research carried out since 1976 in which discussions have taken place with corporate planners in most of the major U.K. nationalized industries. The method followed was to send planners a structured questionnaire covering the field of enquiry, and to follow this by an interview (or interviews) at a high level which would allow further discussion, particularly on the issues seen as important to the organization. The questionnaire was subsequently completed in consultation with the people concerned.     

Confluence and Contours: Reflexive Management of Environmental Risk

Government institutions have responsibilities to distribute risk management funds meaningfully and to be accountable for their choices. We took a macro‐level sociological approach to understanding the role of government in managing environmental risks, and insights from micro‐level psychology to examine individual‐level risk‐related perceptions and beliefs. Survey data from 2,068 U.K. citizens showed that lay people's funding preferences were associated positively with beliefs about responsibility and trust, yet associations with perception varied depending on risk type. Moreover, there were risk‐specific differences in the funding preferences of the lay sample and 29 policymakers. A laboratory‐based study of 109 participants examined funding allocation in more detail through iterative presentation of expert information. Quantitative and qualitative data revealed a meso‐level framework comprising three types of decisionmakers who varied in their willingness to change funding allocation preferences following expert information: adaptors, responders, and resistors. This research highlights the relevance of integrated theoretical approaches to understanding the policy process, and the benefits of reflexive dialogue to managing environmental risks.     

The Mediated Amplification of a Crisis: Communicating the A/H1N1 Pandemic in Press Releases and Press Coverage in Europe

In the aftermath of the A/H1N1 pandemic, health authorities were criticized for failures in crisis communication efforts, and the media were accused of amplifying the pandemic. Considering these criticisms, A/H1N1 provides a suitable case for examining risk amplification processes that may occur in the transfer of information from press releases to print news media during a health crisis. We integrated the social amplification of risk framework with theories of news decisions (news values, framing) in an attempt to contribute to existing research both theoretically and empirically. We conducted a quantitative content analysis of press releases disseminated by health and governmental authorities, as well as the quality and tabloid press in 10 European countries between March 2009 and March 2011. Altogether 243 press releases, 1,243 quality press articles, and 834 tabloid press articles were coded. Consistent with research on news values and framing the results suggest that quality and tabloid papers alike amplified A/H1N1 risks by emphasizing conflict and damage, presenting information in a more dramatized way, and using risk‐amplifying frames to a greater extent and risk‐attenuating frames to a lesser extent than press releases. To some extent, the quality and tabloid press differed in how risk information was presented. While tabloid press articles seemed to follow the leading quality press with regards to content and framing of health crisis coverage, they exhibited a stronger emphasis on drama and emotion in the way they presented information.     

全球金融危机下的股票市场波动跳跃研究——基于高频数据的中美比较分析

本文以雷曼破产日至2009年1月底这段时期内上证综指、恒生指数以及S&P500指数的日内高频数据作为研究对象,采用跳跃显著性检验方法和扩展HAR模型,对波动跳跃特征进行了实证研究.结果表明:雷曼危机导致股市波动的显著提高,但中国内地股市受到的影响最小;中国香港股市成为波动跳跃发生频率最高、跳跃幅度最大的市场,且波动跳跃主要发生在夜间休市时间内;雷曼危机使得波动率模型的预测精度大大降低,股市风险变得更加难以预测,对于新兴市场来说这一现象更加明显.     

Controlling and evaluation

Mr. Newton analyses the personnel strategy of Shell U.K. and describes how it is related to the corporate planning system. He then explains the measures which are taken to plan, control, and research the use of personnel. He deals in detail with the development of a computer based information system, attempts to determine the cost effectiveness of manpower, and the use of the Behavioural Sciences in a positive effort to shape personnel relations in the company. Finally, he mentions a number of changes which are likely to influence personnel strategy in the future.     

Probability Elicitation Under Severe Time Pressure: A Rank‐Based Method

Probability elicitation protocols are used to assess and incorporate subjective probabilities in risk and decision analysis. While most of these protocols use methods that have focused on the precision of the elicited probabilities, the speed of the elicitation process has often been neglected. However, speed is also important, particularly when experts need to examine a large number of events on a recurrent basis. Furthermore, most existing elicitation methods are numerical in nature, but there are various reasons why an expert would refuse to give such precise ratio‐scale estimates, even if highly numerate. This may occur, for instance, when there is lack of sufficient hard evidence, when assessing very uncertain events (such as emergent threats), or when dealing with politicized topics (such as terrorism or disease outbreaks). In this article, we adopt an ordinal ranking approach from multicriteria decision analysis to provide a fast and nonnumerical probability elicitation process. Probabilities are subsequently approximated from the ranking by an algorithm based on the principle of maximum entropy, a rule compatible with the ordinal information provided by the expert. The method can elicit probabilities for a wide range of different event types, including new ways of eliciting probabilities for stochastically independent events and low‐probability events. We use a Monte Carlo simulation to test the accuracy of the approximated probabilities and try the method in practice, applying it to a real‐world risk analysis recently conducted for DEFRA (the U.K. Department for the Environment, Farming and Rural Affairs): the prioritization of animal health threats.     

Communicating with the Public About Marauding Terrorist Firearms Attacks: Results from a Survey Experiment on Factors Influencing Intention to “Run,Hide, Tell” in the United Kingdom and Denmark

Effective risk communication is an integral part of responding to terrorism, but until recently, there has been very little pre‐event communication in a European context to provide advice to the public on how to protect themselves during an attack. Following terrorist attacks involving mass shootings in Paris, France, in November 2015, the U.K. National Police Chiefs’ Council released a Stay Safe film and leaflet that advises the public to “run,” “hide,” and “tell” in the event of a firearms or weapons attack. However, other countries, including Denmark, do not provide preparedness information of this kind, in large part because of concern about scaring the public. In this survey experiment, 3,003 U.K. and Danish participants were randomly assigned to one of three conditions: no information, a leaflet intervention, and a film intervention to examine the impact of “Run, Hide, Tell” advice on perceptions about terrorism, the security services, and intended responses to a hypothetical terrorist firearms attack. Results demonstrate important benefits of pre‐event communication in relation to enhancing trust, encouraging protective health behaviors, and discouraging potentially dangerous actions. However, these findings also suggest that future communications should address perceived response costs and target specific problem behaviors. Cross‐national similarities in response suggest this advice is suitable for adaptation in other countries.     

THE FAILURE TO PREDICT THE GREAT RECESSION—A VIEW THROUGH THE ROLE OF CREDIT

Much has been written about why economists failed to predict the latest crisis. Reading the literature, it seems that this crisis was so obvious that economists must have been blind not to see it coming. We approach this failure by looking at one of the key variables in this analysis, the evolution of credit. We compare the conclusions reached in the recent literature with those that could have been drawn from an ex‐ante analysis. We show that the effect of credit on the business cycle cannot be exploited from a policymaker's point of view.     

Safety Management and Public Spaces: Restoring Balance

Since 2000, the reputation of health and safety in the United Kingdom has been tarnished, so much so that it has become the subject of both a media circus and a government inquiry. This not only threatens the worthy goals of health and safety, but also impacts upon the associated tool of risk assessment itself such that "risk assessment" is increasingly seen by the public at large as a term inviting ridicule, even abuse. The main thrust of the government's examination of health and safety has been its concern that safety requirements were placing a disproportionate burden on business. However, there is another source of discontent, which is public chagrin over the impact of injury control measures upon life beyond the conventional workplace, in particular upon the public spaces that people frequent in their leisure time and on the activities they engage in there. This article provides a perspective on this second dimension of the crisis in confidence. It describes how many U.K. agencies with responsibilities for a wide portfolio of public amenities ranging from the provision of play spaces for the young to the management of publicly accessible countryside, the maintenance of urban and rural trees, the stewardship of sites of cultural heritage, and the pursuit of outdoor educational activities have responded to some conflicts posed to their services by the new safety culture. It concludes with a discussion of implications for the management of public space and for risk assessment itself.     

Risk perception and the economic crisis: a longitudinal study of the trajectory of perceived risk

We conducted a longitudinal survey of public response to the economic crisis to understand the trajectory of risk perception amidst an ongoing crisis. A nation-wide panel responded to seven surveys beginning in late September 2008 at the peak of the crisis and concluded in October 2009. At least 600 respondents participated in each survey, with 413 completing all seven surveys. Our online survey focused on perceptions of risk (savings, investments, retirement, job), negative emotions toward the financial crisis (sadness, anxiety, fear, anger, worry, stress), confidence in national leaders to manage the crisis (President Obama, Congress, Treasury Secretary, business leaders), and belief in one's ability to realize personal objectives despite the crisis. We employed latent growth curve modeling to analyze change in risk perception throughout the crisis. Our results suggest that, in general, people's perceptions of risk appear to decrease most rapidly during the initial phase of a crisis and then begin to level off. Negative emotion about the crisis was the most predictive of increased risk perception, supporting the notion of risk as feelings. Belief in one's ability to realize personal objectives was also predictive. Confidence in national leaders, however, was not predictive of perceived risk. Finally, our results demonstrate that groups may experience a crisis differently depending on a combination of personal characteristics such as gender, income, numeracy, and political attitude. Risk management and communication should work in sync with these mechanisms and differences across groups.     

Availability of Canadian government information

In summary, great improvements have been made, in recent years in the distribution procedures for Canadian Federal Government publications. These, and Bill C-43 have significantly raised the level of availability of the Federal Government information to residents of Canada. Beyond the borders, and specifically in the United States, this information can certainly not be described as readily available to the average citizen. In fairness, it seems likely that U.S. librarians have not been moved to acquire this information because there is no perceived demand for it.Canada's Prime Minister, Pierre Trudeau, has described the effect upon Canada of sharing 3,000 miles of border with the U.S. as akin to “sleeping with an elephant.” Mass media and commerce keep Canadians vividly aware of every aspect of American life. Perhaps it is time Canada attempted to raise its image in the U.S. Active promotion of Canadian Government Information would be a viable beginning.     

次贷危机前后国际原油市场与中美股票市场间的协动性研究

本文运用基于动态条件相关的多元GARCH(DCC-MVGARCH)模型,对美国次信贷危机发生前后国际原油市场和中、美股票市场间的协动性变化进行了研究。实证结果表明在次信贷危机发生后,国际原油市场与中、美股票市场间的协动性有了明显的增强,不同市场间的波动具有明显的传导作用。国际原油市场与美国股市的协动性相对于中国股市波动性更强,说明冲击在国际原油市场与美国股市间的传导更强烈,其协动性对冲击的反应更敏感。另外,运用偏最小二乘方法(PLS)对影响国际原油市场和中、美股票市场的诸多因素在次信贷危机爆发前后对协动性解释能力的变化进行了分析,结果发现次信贷危机对这些因素的解释能力有明显的影响。     

Can Property Values Capture Changes in Environmental Health Risks? Evidence from a Stated Preference Study in Italy and the United Kingdom

Hedonic models are a common nonmarket valuation technique, but, in practice, results can be affected by omitted variables and whether homebuyers respond to the assumed environmental measure. We undertake an alternative stated preference approach that circumvents these issues. We examine how homeowners in the United Kingdom and Italy value mortality risk reductions by asking them to choose among hypothetical variants of their home that differ in terms of mortality risks from air pollution and price. We find that Italian homeowners hold a value of a statistical life (VSL) of €6.4 million, but U.K. homeowners hold a much lower VSL (€2.1 million). This may be because respondents in the United Kingdom do not perceive air pollution where they live to be as threatening, and actually live in cities with relatively low air pollution. Italian homeowners value a reduction in the risk of dying from cancer more than from other causes, but U.K. respondents do not hold such a premium. Lastly, respondents who face higher baseline risks, due to greater air pollution where they live, hold a higher VSL, particularly in the United Kingdom. In both countries, the VSL is twice as large among individuals who perceive air pollution where they live as high.     

Paving the way for electronic medical records

This article explores the reasons why electronic medical records have not become widely deployed in the health care industry. Y2K moved to center stage and fears of computer meltdowns became the single greatest obstacle to overcome before considering new technology possibilities. Almost every other information technology initiative in health care was delayed or suspended, while the issues of compatibility with four-digit dates were examined. Finding systems and devices that weren't Y2K compliant and replacing or working around their deficiencies left precious few resources available for other tasks. Another issue is standardization. The potential and promise of electronic records can only be realized if a standard way to describe clinical information can be agreed upon and implemented in practice situations. Clients have been reluctant to purchase electronic records while vendors are offering nonstandard solutions. Obstacles and benefits to implementing EMR systems are outlined. Despite some of the barriers to implementing EMRs, the future is bright for their widespread deployment.     

Solving the crisis: When agency is the preferred leadership for implementing change

Glass-cliff research shows that female leaders are preferentially selected in a crisis to signal change and not for their leadership qualifications. In parallel, the management literature urges for agentic “masculine” leadership to turn around organizations in crisis. We hypothesized that, regardless of their gender, agentic leaders should be preferred to communal leaders if leadership qualifications and actual change potential motivate leader selection. Three experimental studies demonstrated that agentic (vs. communal) candidates were perceived to match poorly-performing (vs. strongly-performing) companies. This effect was accounted for by perceptions of agentic candidates' higher suitability, higher task-orientation (versus person-orientation), and higher change potential. We discuss that women face ambiguity as to why they become leaders in crisis contexts: because they are perceived as signaling change, stereotypically linked to their gender, or for their perceived agentic qualities as leaders. In contrast, men become crisis leaders due to their perceived agentic change potential.     

Place, Culture, and the Social Amplification of Risk

This article investigates the role of culture in the social production of risks and risk communication surrounding industrial development in a region located at a rural-urban interface. A case study examined a public consultation that was undertaken to inform local residents about an eco-industrial development proposal being planned near Edmonton, Alberta, Canada. The research employed the social amplification of risk framework (SARF) to examine the relationships among culture, place, and socially constructed risk. A total of 44 in-depth, semi-structured interviews were carried out with 33 landowners (farmers, acreage owners), public officials (municipal politicians, administrators), journalists, and industry representatives. Analysis revealed that risk communication occurred in relation to situated experiences of place that were based on conflicting cultural worldviews. The research shows that place is a useful component of the SARF, providing a spatial explanation for why some people amplify, and others attenuate, risks in locally contentious environmental debates.     

Why Rules for Risk Communication Are Not Enough: A Problem-Solving Approach to Risk Communication

Current work on risk communication offers practitioners helpful guidelines and rules such as "speak clearly" and "speak with compassion." While important, these guidelines have limitations. They offer practitioners and scholars little aid in determining why a communication encounter failed. Also, they do not help practitioners anticipate and overcome likely difficulties in future risk situations, nor can they help locate information about how to reduce these difficulties. To overcome the limitations of rule-based approaches to risk communication, this paper describes a diagnostic or problem-solving approach. This approach maintains that instead of rules, people need bases for anticipating likely obstacles to effective communication and selecting approaches that reduce these difficulties. Research on building trust, increasing awareness, deepening comprehension, gaining agreement, and motivating action is available in fields such as communication, educational psychology, science education, marketing, counseling, negotiation, and disaster response. This paper describes a framework that assists scholars and practitioners in: (a) identifying communication goals; (b) determining principal obstacles to those goals; and (c) selecting research-based methods for overcoming or minimizing these difficulties and achieving communication objectives.     

Time‐Varying Risk Premium in Large Cross‐Sectional Equity Data Sets

We develop an econometric methodology to infer the path of risk premia from a large unbalanced panel of individual stock returns. We estimate the time‐varying risk premia implied by conditional linear asset pricing models where the conditioning includes both instruments common to all assets and asset‐specific instruments. The estimator uses simple weighted two‐pass cross‐sectional regressions, and we show its consistency and asymptotic normality under increasing cross‐sectional and time series dimensions. We address consistent estimation of the asymptotic variance by hard thresholding, and testing for asset pricing restrictions induced by the no‐arbitrage assumption. We derive the restrictions given by a continuum of assets in a multi‐period economy under an approximate factor structure robust to asset repackaging. The empirical analysis on returns for about ten thousand U.S. stocks from July 1964 to December 2009 shows that risk premia are large and volatile in crisis periods. They exhibit large positive and negative strays from time‐invariant estimates, follow the macroeconomic cycles, and do not match risk premia estimates on standard sets of portfolios. The asset pricing restrictions are rejected for a conditional four‐factor model capturing market, size, value, and momentum effects.     

基于时序多目标方法的主权信用违约风险研究

次贷危机所引发了冰岛、希腊等国主权债务危机使我们更加关注传统主权信用评级系统的滞后性问题.提出基于时间序列的多目标决策模型,通过对1990—2006年间,32个国家相关经济数据的分析,得到各国主权信用风险效用值的排序.通过聚类分析得到高风险国家簇,该结果与2007年美国次贷危机爆发后发生主权信用违约事件的国家一致,表明该模型具有良好的预测性能,文章最后对模型进行了敏感性分析.