A Deliberative Method for Ranking Risks (I): Overview and Test Bed Development

Risk ranking offers a potentially powerful means for gathering public input to help set risk-management priorities. In most rankings conducted to date, the categories and attributes used to describe the risks have varied widely, the materials and procedures have not been designed to facilitate comparisons among risks on all important attributes, and the validity and reproducibility of the resulting rankings have not been assessed. To address these needs, a risk-ranking method was developed in which risk experts define and categorize the risks to be ranked, identify the relevant risk attributes, and characterize the risks in a set of standardized risk summary sheets, which are then used by lay or other groups in structured ranking exercises. To evaluate this method, a test bed involving 22 health and safety risks in a fictitious middle school was created. This article provides an overview of the risk-ranking method and describes the challenges faced in designing the middle school test bed. A companion article in this issue reports on the validity of the ranking procedures and the level of agreement among risk managers regarding ranking of risks and attributes.     

A Deliberative Method for Ranking Risks (II): Evaluation of Validity and Agreement among Risk Managers

A deliberative method for ranking risks was evaluated in a study involving 218 risk managers. Both holistic and multiattribute procedures were used to assess individual and group rankings of health and safety risks facing students at a fictitious middle school. Consistency between the rankings that emerged from these two procedures was reasonably high for individuals and for groups, suggesting that these procedures capture an underlying construct of riskiness. Participants reported high levels of satisfaction with their groups' decision-making processes and the resulting rankings, and these reports were corroborated by regression analyses. Risk rankings were similar across individuals and groups, even though individuals and groups did not always agree on the relative importance of risk attributes. Lower consistency between the risk rankings from the holistic and multiattribute procedures and lower agreement among individuals and groups regarding these rankings were observed for a set of high-variance risks. Nonetheless, the generally high levels of consistency, satisfaction, and agreement suggest that this deliberative method is capable of producing risk rankings that can serve as informative inputs to public risk-management decision making.     

Addressing Climate Change as an Emerging Risk to Infrastructure Systems

The consequences that climate change could have on infrastructure systems are potentially severe but highly uncertain. This should make risk analysis a natural framework for climate adaptation in infrastructure systems. However, many aspects of climate change, such as weak background knowledge and societal controversy, make it an emerging risk where traditional approaches for risk assessment and management cannot be confidently employed. A number of research developments aimed at addressing these issues have emerged in recent years, such as the development of probabilistic climate projections, climate services, and robust decision frameworks. However, additional research is needed to improve the suitability of these methods for infrastructure planning. In this perspective, we outline some of the challenges in addressing climate change risks to infrastructure and summarize new developments aimed at meeting these challenges. We end by highlighting needs for future research, many of which could be well‐served by expertise within the risk analysis community.     

On Criteria of Insignificant Difference Between Two Risks

The comparison and ranking of risks is very important for safety and cost-benefit analysis. Most formats present risks in the form of probability distribution. Different ranking criteria for probability distributions are considered. It is demonstrated that significantly overlapping distributions lead to ambiguous results. For this reason, criteria of insignificant overlapping distributions are proposed. The first criterion uses the information theory approach; and the second criterion uses the statistical tests approach. Both approaches can be applied to decision theory to avoid questionable decisions based on statistically insignificant differences between two risks.     

考虑背景风险的项目投资决策

在项目投资过程中不但面临项目风险,同时还面临背景风险,且背景风险与项目风险之间往往存在着一定的相关性。文章在已有研究的基础上,针对考虑背景风险的项目投资决策问题,分析了风险之间的相关性及相关程度对投资决策的影响。首先讨论了加性背景风险和乘性背景风险单独存在时,背景风险与项目风险之间的相关性对投资决策的影响;其次构建了两种背景风险同时存在情形下的投资模型,进而通过蒙特卡罗仿真方法给出不同相关程度下的仿真结果,在此基础上分析两种背景风险与项目风险之间的相关性及相关程度对投资决策的影响并给出相关研究结论。     

Judgments of Chemical Risks: Comparisons Among Senior Managers, Toxicologists, and the Public

Nineteen Senior Managers of a major chemical company in the United Kingdom participated in a survey to determine their attitudes, beliefs, and perceptions regarding risks from chemicals. Similar surveys had previously been conducted with toxicologists and members of the general public in the United States and Canada. In general, the Senior Managers tended to judge risks to be quite small for most chemicals. Moreover, they had lower risk perceptions than did members of the British Toxicological Society and even far lower perceptions of risk than a comparison group of members of the Canadian public. The managers held views that were similar to British toxicologists working in industry and government and dissimilar to the views of toxicologists working in academia. The observed differences between views of managers, toxicologists, and the public must be recognized and understood in order to facilitate communication and constructive efforts to manage chemical risks.     

Perceptions of Nuclear and Other Risks in Japan and the United States

As part of a study of nuclear power development in Japan and the United States, surveys of perceptions of risk toward 30 activities, substances, and technologies have been carried out in the Pacific Northwest and Tokyo, Japan. The results show that people in both countries have the highest level of dread toward nuclear waste disposal, nuclear accidents, and nuclear war, greater even than their dread of crime and AIDS. In addition to comparisons of dread, the paper also discusses similarities and differences between Japanese and American responses for other dimensions of risk perception.     

Intuitive Toxicology: Expert and Lay Judgments of Chemical Risks

Human beings have always been intuitive toxicologists, relying on their senses of sight, taste, and smell to detect harmful or unsafe food, water, and air. As we have come to recognize that our senses are not adequate to assess the dangers inherent in exposure to a chemical substance, we have created the sciences of toxicology and risk assessment to perform this function. Yet despite this great effort to overcome the limitations of intuitive toxicology, it has become evident that even our best scientific methods still depend heavily on extrapolations and judgments in order to infer human health risks from animal data. Many observers have acknowledged the inherent subjectivity in the assessment of chemical risks and have indicated a need to examine the subjective or intuitive elements of expert and lay risk judgments. We have begun such an examination by surveying members of the Society of Toxicology and the lay public about basic toxicological concepts, assumptions, and interpretations. Our results demonstrate large differences between toxicologists and laypeople, as well as differences between toxicologists working in industry, academia, and government. In addition, we find that toxicologists are sharply divided in their opinions about the ability to predict a chemical's effect on human health on the basis of animal studies. We argue that these results place the problems of risk communication in a new light. Although the survey identifies misconceptions that experts should clarify for the public, it also suggests that controversies over chemical risks may be fueled as much by limitations of the science of risk assessment and disagreements among experts as by public misconceptions.     

Analysis of Exogenous Components of Mortality Risks

A new technique for deriving exogenous components of mortality risks from national vital statistics has been developed. Each observed death rate D_ij (where i corresponds to calendar time (year or interval of years) and j denotes the number of corresponding age group) was represented as D_ij=A_j+B_iC_j, and unknown quantities A_j, B_i, and C_j were estimated by a special procedure using the least-squares principle. The coefficients of variation do not exceed 10%. It is shown that the term A_j can be interpreted as the endogenous and the second term B_iC_j as the exogenous components of the death rate. The aggregate of endogenous components A_j can be described by a regression function, corresponding to the Gompertz-Makeham law, A(τ) =γ+β· eατ, where γ, β, and α are constants, τ is age, AττAττA_j, and τ_j, is the value of age τ in jth age group. The coefficients of variation for such a representation does not exceed 4%. An analysis of exogenous risk levels in the Moscow and Russian populations during 1980–1995 shows that since 1992 all components of exogenous risk in the Moscow population had been increasing up to 1994. The greatest contribution to the total level of exogenous risk was lethal diseases, and their death rate was 387 deaths per 100,000 persons in 1994, i.e., 61.9% of all deaths. The dynamics of exogenous mortality risk change during 1990–1994 in the Moscow population and in the Russian population without Moscow had been identical: the risk had been increasing, and its value in the Russian population had been higher than that in the Moscow population.     

Intuitive Toxicology. II. Expert and Lay Judgments of Chemical Risks in Canada

This study is a replication and extension in Canada of a previous study in the United States in which toxicologists and members of the public were surveyed to determine their attitudes, beliefs, and perceptions regarding risks from chemicals. This study of "intuitive vs. scientific toxicology" was motivated by the premise that different assumptions, conceptions, and values underlie much of the discrepancy between expert and lay views of chemical risks. The results showed that Canadian toxicologists had far lower perceptions of risk and more favorable attitudes toward chemicals than did the Canadian public. The public's attitudes were quite negative and showed the same lack of dose-response sensitivity found in the earlier U.S. study. Both the public and the toxicologists lacked confidence in the value of animal studies for predicting human health risks. However, the public had great confidence in the validity of animal studies that found evidence of carcinogenicity, whereas such evidence was not considered highly predictive of human health risk by many toxicologists. Technical judgments of toxicologists were found to be associated with factors such as affiliation, gender, and worldviews. Implications of these data for risk communication are briefly discussed.     

Managing Disruption Risks in Supply Chains

There are two broad categories of risk affecting supply chain design and management: (1) risks arising from the problems of coordinating supply and demand, and (2) risks arising from disruptions to normal activities. This paper is concerned with the second category of risks, which may arise from natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. The paper provides a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains. We then consider empirical results from a rich data set covering the period 1995–2000 on accidents in the U. S. Chemical Industry. Based on these results and other literature, we discuss the implications for the design of management systems intended to cope with supply chain disruption risks.     

Evaluating Methods for Estimating Existential Risks

Researchers and commissions contend that the risk of human extinction is high, but none of these estimates have been based upon a rigorous methodology suitable for estimating existential risks. This article evaluates several methods that could be used to estimate the probability of human extinction. Traditional methods evaluated include: simple elicitation; whole evidence Bayesian; evidential reasoning using imprecise probabilities; and Bayesian networks. Three innovative methods are also considered: influence modeling based on environmental scans; simple elicitation using extinction scenarios as anchors; and computationally intensive possible‐worlds modeling. Evaluation criteria include: level of effort required by the probability assessors; level of effort needed to implement the method; ability of each method to model the human extinction event; ability to incorporate scientific estimates of contributory events; transparency of the inputs and outputs; acceptability to the academic community (e.g., with respect to intellectual soundness, familiarity, verisimilitude); credibility and utility of the outputs of the method to the policy community; difficulty of communicating the method's processes and outputs to nonexperts; and accuracy in other contexts. The article concludes by recommending that researchers assess the risks of human extinction by combining these methods.     

Introduction to Special Issue on POM Research on Emerging Markets

This special issue presents production and operations management research papers from emerging markets worldwide, focusing on their unique contexts, institutions and markets. Collectively, they offer insights into the unique operations management strategies and practices that firms face in emerging markets. The magnitude and pace of change is staggering. As a result, execution and managing growth in these emerging markets represents both huge operational and supply chain risks, and simultaneously vast opportunities. We are confident that these papers stimulate new operations management research while highlighting the effective use of different research methodologies. We welcome you to enjoy this special issue of POMS. We express our deep gratitude to editorial team for their support. We especially wish to thank the authors for their contributions to this special issue.     

An Integrated Approach for Modeling Sustainability Risks in Freight Transportation Systems

Integrating sustainability into freight transportation systems (FTSs) is a complex and challenging task due to the sheer number of inherent sustainability risks. Sustainability risks disrupt the economic, social and environmental objectives of freight operations and act as impediments in the development of sustainable freight transportation systems. The area of sustainability risk management is still unexplored and immature in the operational research domain. This study addresses these research gaps and contributes in a threefold manner. First, a total of 36 potential sustainability risks related to FTSs are identified and uniquely classified into seven categories using a rigourous approach. Second, the research proposes two prominent perspectives, namely, ontological and epistemological perspectives to understand risks and develops a novel framework for managing sustainability risks in FTSs. Third, a novel approach by integrating fuzzy evidential reasoning algorithm (FERA) with expected utility theory is developed to quantitatively model and profile sustainability risk for different risk preferences, namely, risk-averse, risk-neutral, and risk-taking scenarios. The proposed FERA is a flexible and robust approach, which transforms the experts’ inputs into belief structures and aggregates them using the evidence combination rule proposed in Dempster–Shafer theory to overcome the problem of imprecise results caused by average scoring in existing models. A sensitivity analysis is conducted to demonstrate the robustness of the proposed model. Unlike conventional perception, our study suggests that most of the high priority sustainability risks are behaviorally and socially induced rather than financially driven. The results provide significant managerial implications including a focus on skills development, and on social and behavioral dimensions while managing risks in FTSs.     

Toward an Epidemiology of Safety and Security Risks: An Organizational Vulnerability Assessment in International Airports

International airports are complex sociotechnical systems that have an intrinsic potential to develop safety and security disruptions. In the absence of appropriate defenses, and when the potential for disruption is neglected, organizational crises can occur and jeopardize aviation services. This investigation examines the ways in which modern international airports can be “authors of their own misfortune” by adopting practices, attitudes, and behaviors that could increase their overall level of vulnerability. A sociotechnical perspective, the macroergonomic approach, is applied in this research to detect the potential organizational determinants of vulnerability in airport operations. Qualitative data nurture the case study on international airports produced by the present research. Findings from this study highlight that systemic weaknesses frequently reside in areas at the intersection of physical, organizational, and social spaces. Specific pathways of vulnerability can be drawn across these areas, involving the following systemic layers: individual, task, tools and technology, environment, and organization. This investigation expands the existing literature on the dynamics that characterize crisis incubation in multiorganization, multistakeholder systems such as international airports and provides practical recommendations for airport managers to improve their capabilities to early detect symptoms of organizational vulnerability.     

Perception and Acceptance of Technological and Environmental Risks: Why Are Poor Countries Less Concerned?

The research has been aimed at answering two questions: (1) What factors impact perception and acceptance of technological and environmental hazards? (2) Why are rich societies involved more in protecting their environment and health than poor societies? Data has been collected from representative samples of two countries—Poland and Sweden. The results indicate that (1) contrary to earlier findings, the inverse relations between perceived benefits and dangers of hazards has not been observed, (2) acceptance of a risk has been mostly influenced by perceived benefits, (3) rejection of a risk has been mostly influenced by its perceived harmful consequences. Concerning the second question, it has been found that: (1) perceived hazard's danger and benefit is not the only factor that impacts its acceptance, and (2) a broader economic context can impact acceptance (tolerance) of hazards. It has been found that being aware of high dangers and not very high benefits of hazardous activities, Poles still have accepted them. Thus, Poles seem to follow an old proverb: “When one does not have what one likes, one has to like what one has.”     

Oral Poliovirus Vaccine Evolution and Insights Relevant to Modeling the Risks of Circulating Vaccine‐Derived Polioviruses (cVDPVs)

The live, attenuated oral poliovirus vaccine (OPV) provides a powerful tool for controlling and stopping the transmission of wild polioviruses (WPVs), although the risks of vaccine‐associated paralytic polio (VAPP) and circulating vaccine‐derived poliovirus (cVDPV) outbreaks exist as long as OPV remains in use. Understanding the dynamics of cVDPV emergence and outbreaks as a function of population immunity and other risk factors may help to improve risk management and the development of strategies to respond to possible outbreaks. We performed a comprehensive review of the literature related to the process of OPV evolution and information available from actual experiences with cVDPV outbreaks. Only a relatively small fraction of poliovirus infections cause symptoms, which makes direct observation of the trajectory of OPV evolution within a population impractical and leads to significant uncertainty. Despite a large global surveillance system, the existing genetic sequence data largely provide information about transmitted virulent polioviruses that caused acute flaccid paralysis, and essentially no data track the changes that occur in OPV sequences as the viruses transmit largely asymptomatically through real populations with suboptimal immunity. We updated estimates of cVDPV risks based on actual experiences and identified the many limitations in the existing data on poliovirus transmission and immunity and OPV virus evolution that complicate modeling. Modelers should explore the space of potential model formulations and inputs consistent with the available evidence and future studies should seek to improve our understanding of the OPV virus evolution process to provide better information for policymakers working to manage cVDPV risks.     

Synthetic-Fuel Plants: Potential Tumor Risks to Public Health

This article quantifies potential public health risks from tumor-producing pollutants emitted from two synthetic-fuel plants (direct liquefaction--Exxon Donor Solvent: and indirect liquefaction--Lurgi Fischer-Tropsch) located at a representative site in the eastern United States. In these analyses gaseous and aqueous waste streams were characterized; exposures via inhalation, terrestrial and aquatic food chains, and drinking water supplies were modeled. Analysis suggested that emissions of "polycyclic aromatic hydrocarbons," "aromatic amines," "neutral N, O, S heterocyclics," "nitriles," and "other trace elements" pose the largest quantifiable risks to public health. Data and analysis for these pollutant categories should be refined to more accurately match compound-specific estimated exposure levels with tumorigenic potency estimates. Before these results are used for regulatory purposes, more detailed analysis for selected pollutant classes are needed, and more sophisticated aquatic exposure models must be developed. Also, differences in geographic scales among the environmental transport models used need to be rectified.     

业务外包风险分析与控制

结合现代企业理论中的交易费用理论和“委托-代理”理论,对业务外包风险进行了深入的剖析,详细分析了外包决策和执行两个阶段的风险,并提出了相应的风险控制策略。     

How to Perform an Ethical Risk Analysis (eRA)

Ethical analysis is often needed in the preparation of policy decisions on risk. A three‐step method is proposed for performing an ethical risk analysis (eRA). In the first step, the people concerned are identified and categorized in terms of the distinct but compatible roles of being risk‐exposed, a beneficiary, or a decisionmaker. In the second step, a more detailed classification of roles and role combinations is performed, and ethically problematic role combinations are identified. In the third step, further ethical deliberation takes place, with an emphasis on individual risk‐benefit weighing, distributional analysis, rights analysis, and power analysis. Ethical issues pertaining to subsidiary risk roles, such as those of experts and journalists, are also treated in this phase. An eRA should supplement, not replace, a traditional risk analysis that puts emphasis on the probabilities and severities of undesirable events but does not cover ethical issues such as agency, interpersonal relationships, and justice.