Statistical Life Valuation

As monetization of risk becomes more mainstream, values must be assigned to the potential for human injury or fatality.  The risk assessor need not generate values himself since such numbers are published in various sources.  This includes values that have been used in US government decision-making for years. Here is some example guidance:  VSL Guidance 2013 […]

Where is the Risk Control Strategy?

In an earlier article, we noted that risk management is, in effect, often unintentionally delegated to decision-makers occupying the lower portions of the corporate org chart.  In many companies, the field personnel are essentially setting corporate risk levels via their choices in day-to-day activities and their perceptions of priorities. While we noted some advantages of […]

The economics of acceptable risk

While avoiding the many nuances of ‘acceptable’ vs ‘tolerable’ risk and ‘How safe is safe enough?’ issues, let’s scratch the surface of setting, moving towards, or sustaining a target risk level. We begin with a premise that risk reduction is sought for some asset or collection of assets. We explore the risk reduction opportunities with […]

Due Diligence—Risk Costs of Asset Ownership

In this column, we occasionally highlight applications of risk assessment that are perhaps less apparent to some.  Since risk permeates almost all industrial endeavors, it is not surprising that risk understanding is or should be an essential part of many types of decision-making.  We have already covered risk assessment in incident investigation and as a […]

Risk Management Resources

Articles <!– Where is the Risk Control Strategy? –> Is formal risk assessment helping me? Pipeline risk assessment as a tool for resolving conflict Pipeline risk assessment: risk profiling Full understanding of pipeline risk generates numerous opportunities to reduce that risk. So previous chapters have already identified risk mitigation opportunities. Reducing exposure, increasing mitigation or […]