The Call for a Shift from Risk to Resilience: What Does it Mean?

In recent years calls have been made for a shift from risk to resilience. The basic idea is that we need to be prepared when threatening events occur, whether they are anticipated or unforeseen. This article questions the extent to which this call will have and should have implications for the risk field and science. Is the call based on a belief that this field and science should be replaced by resilience analysis and management, or is it more about priorities: Should more weight be placed on improving resilience? The article argues that the only meaningful interpretation of the call is the latter. Resilience analysis and management is today an integrated part of the risk field and science, and risk analysis in a broad sense is needed to increase relevant knowledge, develop adequate policies, and make the right decisions, balancing different concerns and using our limited resources in an effective way.     

On Summarizing Group Exposures in Risk Assessment: Is an Arithmetic Mean or a Geometric Mean More Appropriate?

Since substantial bias can result from assigning some type of mean exposure to a group, risk assessments based on epidemiological data should avoid the grouping of data whenever possible. However, ungrouped data are frequently unavailable, and the question arises as to whether an arithmetic or geometric mean is the most appropriate summary measure of exposure. It is argued in this paper that one should use the type of mean for which the total risk that would result if every member of the population was exposed to the mean level is as close as possible to the actual total population risk. Using this criterion an arithmetic mean is always preferred over a geometric mean whenever the dose response is convex. In each of several data sets examined in this paper for which the dose response was not convex, an arithmetic mean was still preferred based on this criterion.     

People's Preferences for Safety Control: Why Does Baseline Risk Matter?

Previous tests of how people's valuations of safety vary with the level of baseline risk have left policymakers with a rather mixed message. Some data support the conventional hypothesis derived from economic theory that marginal valuations of risk changes increase with the baseline level, but other data reject it. With these indeterminate findings in mind, the present study adopted an in-depth quantitative-qualitative methodology to explore the preferences of a general population sample (N = 147) for safety programs targeted at hazards with different age groups at risk and numbers of deaths per year. The data clearly showed that self- or household interest mattered to people (e.g., programs in which the respondent or their household members were in the at-risk age group were evaluated more positively). The number of deaths also mattered, although not always for reasons strictly consistent with the conventional hypothesis. Rather, the qualitative findings suggested that evaluations may be driven by auxiliary assumptions about aspects of the programs induced by this information (e.g., people believe that a higher number of deaths is an indicator that more people are likely to be exposed to that hazard). These findings bring into question the extent to which quantitative responses from stated preference surveys can be taken at face value to form a reliable basis for public policy.     

Does Ethnic Diversity Mean Cultural Diversity?

This paper examines the degree of cultural diversity between two ethnic groups in South Florida. The cultural attitudes and causal attributions for unethical work behavior of 269 Anglo and Hispanic business graduate students and of 255 Anglo and Hispanic business executives were investigated. Findings from t-test comparisons for both of these samples suggest a strong agreement between Hispanics and Anglos in their individualism and collectivism orientation, as well as in their process of justifying potentially unethical decisions. Implications for theory, research and practices will be discussed. This revised version was published online in July 2006 with corrections to the Cover Date.     

The ultimate goal? It depends

The knowledge that cervical cancer should be a preventable disease has provided the impetus to improve the Pap smear. Now, for the first time in 50 years, two new computerized technologies are available--the AutoPap and Papnet systems--that could change the way they are interpreted. Of course, these new innovations come at a price, perhaps doubling or tripling the cost--by one estimate, the new technologies could add $1 billion per year. The health policy issue is whether these innovations address the limitations of cervical cancer screening programs in an efficient way. The analysis is entirely different when cast as an individual patient care issue. Here the patient and physician, who serves as her advocate, want to use the best screening method. The goal is not how to best allocate resources to improve the health of the overall population, but instead how to get the best care for the individual patient.     

Does Medical Risk Perception and Risk Taking Change with Age?

Across adulthood, people face increasingly more risky medical problems and decisions. However, little is known about changes in medical risk taking across adulthood. Therefore, the current cross‐sectional study investigated age‐related differences in medical risk taking with N = 317 adults aged 20–77 years using newly developed scenarios to assess medical risk taking, and additional measures designed to evaluate risk‐taking behavior in the medical domain. Greater expected benefits on the Domain‐Specific Risk‐Taking Scale—Medical (DOSPERT‐M) predicted more active risk taking, whereas higher perceived risk predicted less active risk taking. Next, we examined differences in active and passive risk taking, where passive risk taking refers to risk taking that is associated with inaction. Age was associated with less passive risk taking, but not with active risk taking, risk perception, or expected benefits on the DOSPERT‐M. Participants were overall more likely to opt for taking medical action than not, even more so for a scenario about a vaccine for a deadly flu than for a scenario about a chemotherapy treatment for cancer. Overall, participants were more likely to accept medication (vaccine or chemotherapy) for their child than for themselves. Increasing age was associated with a lower likelihood of accepting the treatment or vaccine for oneself. Taken together, our study provides important insights about changes in medical risk taking across adulthood when people face an increasing number of complex and risky medical decisions.     

When Does Poor Governance Presage Biosecurity Risk?

Border inspection, and the challenge of deciding which of the tens of millions of consignments that arrive should be inspected, is a perennial problem for regulatory authorities. The objective of these inspections is to minimize the risk of contraband entering the country. As an example, for regulatory authorities in charge of biosecurity material, consignments of goods are classified before arrival according to their economic tariff number. This classification, perhaps along with other information, is used as a screening step to determine whether further biosecurity intervention, such as inspection, is necessary. Other information associated with consignments includes details such as the country of origin, supplier, and importer, for example. The choice of which consignments to inspect has typically been informed by historical records of intercepted material. Fortunately for regulators, interception is a rare event; however, this sparsity undermines the utility of historical records for deciding which containers to inspect. In this article, we report on an analysis that uses more detailed information to inform inspection. Using quarantine biosecurity as a case study, we create statistical profiles using generalized linear mixed models and compare different model specifications with historical information alone, demonstrating the utility of a statistical modeling approach. We also demonstrate some graphical model summaries that provide managers with insight into pathway governance.     

When Is a Risk Assessment Deficient According to an Uncertainty‐Based Risk Perspective?

The Petroleum Safety Authority Norway (PSA‐N) has recently adopted a new definition of risk: “the consequences of an activity with the associated uncertainty.” The PSA‐N has also been using “deficient risk assessment” for some time as a basis for assigning nonconformities in audit reports. This creates an opportunity to study the link between risk perspective and risk assessment quality in a regulatory context, and, in the present article, we take a hard look at the term “deficient risk assessment” both normatively and empirically. First, we perform a conceptual analysis of how a risk assessment can be deficient in light of a particular risk perspective consistent with the new PSA‐N risk definition. Then, we examine the usages of the term “deficient” in relation to risk assessments in PSA‐N audit reports and classify these into a set of categories obtained from the conceptual analysis. At an overall level, we were able to identify on what aspects of the risk assessment the PSA‐N is focusing and where deficiencies are being identified in regulatory practice. A key observation is that there is a diversity in how the agency officials approach the risk assessments in audits. Hence, we argue that improving the conceptual clarity of what the authorities characterize as “deficient” in relation to the uncertainty‐based risk perspective may contribute to the development of supervisory practices and, eventually, potentially strengthen the learning outcome of the audit reports.     

What Do We Mean by Performativity in Organizational and Management Theory? The Uses and Abuses of Performativity

John Austin introduced the formulation ‘performative utterance’ in his 1962 book How to Do Things with Words. This term and the related concept of performativity have subsequently been interpreted in numerous ways by social scientists and philosophers such as Lyotard, Butler, Callon and Barad, leading to the coexistence of several foundational perspectives on performativity. This paper reviews and evaluates critically how organization and management theory (OMT) scholars have used these perspectives, and how the power of performativity has, or has not, stimulated new theory‐building. In performing a historical and critical review of performativity in OMT, the authors’ analysis reveals the uses, abuses and under‐uses of the concept by OMT scholars. It also reveals the lack of both organizational conceptualizations of performativity and analysis of how performativity is organized. Ultimately, the authors’ aim is to provoke a ‘performative turn’ in OMT by unleashing the power of the performativity concept to generate new and stronger organizational theories.     

The Performance of MNE Subsidiaries in China: Does It Matter to Be Close to the Political or Business Hub?

This study examines the impact of distance on financial performance of multinational enterprise (MNE) subsidiaries in China. We hypothesized and found that MNE subsidiaries performed better when located closer to the country's business hub, but performed less well when located closer to the political hub. We also hypothesized that distance effects are moderated by subsidiary size, subsidiary network, and state capital contribution to subsidiary. Our findings were based upon 45,248 MNE subsidiaries with location and geographic distance measured at the prefectural level in China.     

The Market for Non‐Executive Directors: Does Acquisition Performance Influence Future Board Seats?

This paper investigates whether non‐executive directors associated with good (bad) board decisions are subsequently rewarded (penalized) in the market for directors. This question is addressed by assessing whether the post‐acquisition performance of acquiring companies influences the number of non‐executive directorships that non‐executives involved in these acquisitions hold subsequent to the acquisition. We find that non‐executives on the boards of acquirers that increase (omit or cut) their dividend subsequently hold more (fewer) non‐executive directorships in listed companies. Our findings suggest that the non‐executive labour market is efficient and rewards (penalizes) non‐executives for good (bad) acquisitions.     

Strategic CSR for innovation in SMEs: Does diversity matter?

Both corporate social responsibility and diversity influence firms' innovation, yet their relationship and links to innovation remain uncertain, especially among small to medium-sized enterprises. Relying on strategic and institutional CSR perspectives and a value-in-diversity approach, this study examines the mediating roles of gender and nationality diversity on the CSR–innovation link at the organizational level. With a sample of 1348 SMEs from Luxembourg, the results show that strategic CSR can promote both types of diversity, but only nationality diversity triggers technological innovation. Nationality diversity emerges as a partial mediator of the relationship between CSR and SMEs’ technological innovation. Thus, strategic CSR, through the genuine pursuit of such diversity, can help SMEs attain positive returns on their product or process innovation. These results have important theoretical and managerial implications.     

Accountability in Voluntary Partnerships: To Whom and for What?

This paper contributes to the understanding of accountability in collaborative governance by presenting views of practitioners from partnerships formed between K-12 public schools and private and nonprofit organizations in the United States. It focuses on two questions: what do partnership practitioners see the partnerships as being accountable for? And to whom do they see the partnerships as being accountable? The findings suggest that partnership participants reveal more of client-based and results-oriented views of accountability. They are more directly concerned about professional accountability and accountability to the partners. A concentric-circles model is then developed to illustrate the accountability relationships in partnerships.     

What lies ahead for medical management?

The consensus is that, in spite of a reluctance in Washington to undertake any drastic reform of the health care financing and delivery system, the changes that are already in place in individual organizations and that are in place or being contemplated at the state level are certain to make the health care system of tomorrow very different from that of today. Physician executives can play an important role in the transition that will be required, but they will have to use a flexible, especially nondogmatic approach if they wish to cope successfully in this increasingly whirling environment. For such physicians, the author says, the opportunities, though unknown, are enormous.     

Elusive Critical Elements of Transformative Risk Assessment Practice and Interpretation: Is Alternatives Analysis the Next Step?

This article argues that “game‐changing” approaches to risk analysis must focus on “democratizing” risk analysis in the same way that information technologies have democratized access to, and production of, knowledge. This argument is motivated by the author's reading of Goble and Bier's analysis, “Risk Assessment Can Be a Game‐Changing Information Technology—But Too Often It Isn't” (Risk Analysis, 2013; 33: 1942–1951), in which living risk assessments are shown to be “game changing” in probabilistic risk analysis. In this author's opinion, Goble and Bier's article focuses on living risk assessment's potential for transforming risk analysis from the perspective of risk professionals—yet, the game‐changing nature of information technologies has typically achieved a much broader reach. Specifically, information technologies change who has access to, and who can produce, information. From this perspective, the author argues that risk assessment is not a game‐changing technology in the same way as the printing press or the Internet because transformative information technologies reduce the cost of production of, and access to, privileged knowledge bases. The author argues that risk analysis does not reduce these costs. The author applies Goble and Bier's metaphor to the chemical risk analysis context, and in doing so proposes key features that transformative risk analysis technology should possess. The author also discusses the challenges and opportunities facing risk analysis in this context. These key features include: clarity in information structure and problem representation, economical information dissemination, increased transparency to nonspecialists, democratized manufacture and transmission of knowledge, and democratic ownership, control, and interpretation of knowledge. The chemical safety decision‐making context illustrates the impact of changing the way information is produced and accessed in the risk context. Ultimately, the author concludes that although new chemical safety regulations do transform access to risk information, they do not transform the costs of producing this information—rather, they change the bearer of these costs. The need for further risk assessment transformation continues to motivate new practical and theoretical developments in risk analysis and management.     

Better Safe than Sorry? The Effects of Income Risk and Unemployment Risk on Wages

We study the effects of income risk and unemployment risk on individual wages simultaneously. Starting point for the empirical analysis is a portfolio model for the labor market. This model shows positive wage effects for both risks but also a negative interaction effect. Using German administrative panel data we estimate the effects of the income risk, the unemployment risk and their interaction on individual wages separately for men and women in East and West Germany. We find the expected positive wage effects for both risks as well as a negative interaction effect. The marginal effect of income risk on wages is positive, whereas the marginal effect of unemployment risk is negative.