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Adaptive risk management using new risk perspectives – an example from the oil and gas industry

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  • Bjerga, Torbjørn
  • Aven, Terje

Abstract

This article discusses management of risk in the case of large uncertainties and the use of adaptive risk management in such situations. This type of management is based on the acknowledgement that one best decision cannot be made, but rather, a set of alternatives should be dynamically tracked to gain information and knowledge about the effects of different courses of action. In the article, we study a case from the oil and gas industry, the main aim being to gain insights into how adaptive risk management could be implemented when giving due attention to the knowledge and uncertainty aspects of risk. In recent years, several authors have argued for the adoption of some new types of risk perspectives, which highlight uncertainties and knowledge in the way risk is understood and measured — this article uses these perspectives as the basis for the discussion.

Suggested Citation

  • Bjerga, Torbjørn & Aven, Terje, 2015. "Adaptive risk management using new risk perspectives – an example from the oil and gas industry," Reliability Engineering and System Safety, Elsevier, vol. 134(C), pages 75-82.
    • Handle: RePEc:eee:reensy:v:134:y:2015:i:c:p:75-82
    DOI: 10.1016/j.ress.2014.10.013
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    References listed on IDEAS

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    1. Terje Aven & Ortwin Renn, 2009. "On risk defined as an event where the outcome is uncertain," Journal of Risk Research, Taylor & Francis Journals, vol. 12(1), pages 1-11, January.
    2. M. Elisabeth Paté-Cornell & Robin L. Dillon, 2006. "The Respective Roles of Risk and Decision Analyses in Decision Support," Decision Analysis, INFORMS, vol. 3(4), pages 220-232, December.
    3. Aven, Terje & Krohn, Bodil S., 2014. "A new perspective on how to understand, assess and manage risk and the unforeseen," Reliability Engineering and System Safety, Elsevier, vol. 121(C), pages 1-10.
    4. Terje Aven & Ortwin Renn, 2010. "Risk Management and Governance," Risk, Governance and Society, Springer, number 978-3-642-13926-0, March.
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    Citations

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    Cited by:

    1. Shortridge, Julie & Aven, Terje & Guikema, Seth, 2017. "Risk assessment under deep uncertainty: A methodological comparison," Reliability Engineering and System Safety, Elsevier, vol. 159(C), pages 12-23.
    2. Simon Ashby & Trevor Buck & Stephanie Nöth-Zahn & Thomas Peisl, 2018. "Emerging IT Risks: Insights from German Banking," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(2), pages 180-207, April.
    3. Nguyen, Son & Chen, Peggy Shu-Ling & Du, Yuquan & Shi, Wenming, 2019. "A quantitative risk analysis model with integrated deliberative Delphi platform for container shipping operational risks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 203-227.
    4. Torbjørn Bjerga & Terje Aven, 2016. "Some perspectives on risk management: A security case study from the oil and gas industry," Journal of Risk and Reliability, , vol. 230(5), pages 512-520, October.
    5. Aven, Terje & Ylönen, Marja, 2019. "The strong power of standards in the safety and risk fields: A threat to proper developments of these fields?," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 279-286.

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