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Improving risk characterisations in practical situations by highlighting knowledge aspects, with applications to risk matrices

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  • Aven, Terje

Abstract

Current practice for risk characterisations is based on methods reflecting threats, their consequences and probability, as well as concepts like risk factors and sources. The risk matrix is an example of such a method. The risk analysis field has demonstrated that there are many challenges related to this practice and there is a substantial potential for improvements in how the characterisations can be conducted. The key is to better reflect the knowledge aspect of risk. The purpose of the present paper is to present a set of practical methods that can be used for characterising risk in this setting in line with these findings of the risk analysis field. Extended risk matrix approaches are highlighted. These approaches include strength of knowledge judgements and rankings of risk factors and assumptions supporting the analysis. Special attention is given to potential surprises relative to the current knowledge. Simple examples are presented to illustrate the use of these methods and approaches.

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  • Aven, Terje, 2017. "Improving risk characterisations in practical situations by highlighting knowledge aspects, with applications to risk matrices," Reliability Engineering and System Safety, Elsevier, vol. 167(C), pages 42-48.
    • Handle: RePEc:eee:reensy:v:167:y:2017:i:c:p:42-48
    DOI: 10.1016/j.ress.2017.05.006
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    3. Svana Helen Björnsdottir & Pall Jensson & Saemundur E. Thorsteinsson & Ioannis M. Dokas & Robert J. de Boer, 2022. "Benchmarking ISO Risk Management Systems to Assess Efficacy and Help Identify Hidden Organizational Risk," Sustainability, MDPI, vol. 14(9), pages 1-33, April.
    4. Aven, Terje, 2020. "Three influential risk foundation papers from the 80s and 90s: Are they still state-of-the-art?," Reliability Engineering and System Safety, Elsevier, vol. 193(C).
    5. Scarf, P.A. & Cavalcante, C.A.V. & Lopes, R.S., 2019. "Delay-time modelling of a critical system subject to random inspections," European Journal of Operational Research, Elsevier, vol. 278(3), pages 772-782.
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    8. Aven, Terje & Kristensen, Vidar, 2019. "How the distinction between general knowledge and specific knowledge can improve the foundation and practice of risk assessment and risk-informed decision-making," Reliability Engineering and System Safety, Elsevier, vol. 191(C).
    9. Abrahamsen, Eirik Bjorheim & Abrahamsen, Håkon Bjorheim & Milazzo, Maria Francesca & Selvik, Jon Tømmerås, 2018. "Using the ALARP principle for safety management in the energy production sector of chemical industry," Reliability Engineering and System Safety, Elsevier, vol. 169(C), pages 160-165.
    10. Abroon Qazi & Mecit Can Emre Simsekler & Steven Formaneck, 2023. "Supply chain risk network value at risk assessment using Bayesian belief networks and Monte Carlo simulation," Annals of Operations Research, Springer, vol. 322(1), pages 241-272, March.
    11. Maria-Teresa Bosch-Badia & Joan Montllor-Serrats & Maria-Antonia Tarrazon-Rodon, 2020. "Risk Analysis through the Half-Normal Distribution," Mathematics, MDPI, vol. 8(11), pages 1-27, November.
    12. Anna Kosovac & Brian Davidson & Hector Malano, 2019. "Are We Objective? A Study into the Effectiveness of Risk Measurement in the Water Industry," Sustainability, MDPI, vol. 11(5), pages 1-13, February.
    13. Qazi, Abroon, 2023. "Exploring Global Competitiveness Index 4.0 through the lens of country risk," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    14. Roger C. Jensen & Royce L. Bird & Blake W. Nichols, 2022. "Risk Assessment Matrices for Workplace Hazards: Design for Usability," IJERPH, MDPI, vol. 19(5), pages 1-23, February.
    15. 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.
    16. Mangirdas Morkunas & Gintaras Cernius & Gintare Giriuniene, 2019. "Assessing Business Risks of Natural Gas Trading Companies: Evidence from GET Baltic," Energies, MDPI, vol. 12(14), pages 1-14, July.

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