Risk and Uncertainty Analysis in Government Safety Decisions

Probabilistic risk analysis (PRA) can be an effective tool to assess risks and uncertainties and to set priorities among safety policy options. Based on systems analysis and Bayesian probability, PRA has been applied to a wide range of cases, three of which are briefly presented here: the maintenance of the tiles of the space shuttle, the management of patient risk in anesthesia, and the choice of seismic provisions of building codes for the San Francisco Bay Area. In the quantification of a risk, a number of problems arise in the public sector where multiple stakeholders are involved. In this article, I describe different approaches to the treatments of uncertainties in risk analysis, their implications for risk ranking, and the role of risk analysis results in the context of a safety decision process. I also discuss the implications of adopting conservative hypotheses before proceeding to what is, in essence, a conditional uncertainty analysis, and I explore some implications of different levels of ‘‘conservatism’’ for the ranking of risk mitigation measures.

[1]  T. Fearn,et al.  Bayesian statistics : principles, models, and applications , 1990 .

[2]  B. John Garrick,et al.  Recent Case Studies and Advancements in Probabilistic Risk Assessment , 1984 .

[3]  Paul S. Fischbeck,et al.  Probabilistic interpretation of command and control signals: Bayesian updating of the probability of nuclear attack: A reply , 1995 .

[4]  Peter A. Morris,et al.  Decision Analysis Expert Use , 1974 .

[5]  M. Elisabeth Paté-Cornell Quantitative safety goals for risk management of industrial facilities , 1994 .

[6]  M. Elisabeth Paté-Cornell Risk Management for Existing Energy Facilities: A Global Approach to Numerical Safety Goals , 1993 .

[7]  G. Apostolakis The concept of probability in safety assessments of technological systems. , 1990, Science.

[8]  P. C. Fishburn,et al.  On the theory of ambiguity , 1991 .

[9]  M. Paté-Cornell,et al.  A challenge to the compound lottery axiom: A two-stage normative structure and comparison to other theories , 1994 .

[10]  Paul S. Fischbeck,et al.  Risk Management for the Tiles of the Space Shuttle , 1994 .

[11]  M. Elisabeth Paté-Cornell Conditional Uncertainty Analysis and Implications for Decision Making: The Case of WIPP , 1999, Risk analysis : an official publication of the Society for Risk Analysis.

[12]  Peter C. Fishburn,et al.  Ellsberg Revisited: A New Look at Comparative Probability , 1983 .

[13]  L. J. Savage,et al.  The Foundations of Statistics , 1955 .

[14]  Peter C. Fishburn,et al.  The axioms and algebra of ambiguity , 1993 .

[15]  P. Slovic Perception of risk. , 1987, Science.

[16]  M. Elisabeth Paté-Cornell,et al.  Uncertainties in risk analysis: Six levels of treatment , 1996 .

[17]  M. Elisabeth Paté,et al.  Acceptable decision processes and acceptable risks in public sector regulations , 1983, IEEE Transactions on Systems, Man, and Cybernetics.

[18]  Tammy O. Tengs,et al.  Five-hundred life-saving interventions and their cost-effectiveness. , 1995, Risk analysis : an official publication of the Society for Risk Analysis.

[19]  C. Allin Cornell,et al.  Use of Technical Expert Panels: Applications to Probabilistic Seismic Hazard Analysis * , 1998 .

[20]  Ronald L. Iman,et al.  Expert opinion in risk analysis: the NUREG-1150 methodology , 1989 .

[21]  Robin L. Dillon,et al.  Probabilistic risk analysis for the NASA space shuttle: a brief history and current work , 2001, Reliab. Eng. Syst. Saf..

[22]  D. Ellsberg Decision, probability, and utility: Risk, ambiguity, and the Savage axioms , 1961 .

[23]  Ralph L. Keeney,et al.  Eliciting probabilities from experts in complex technical problems , 1991 .

[24]  Elisabeth Paté-Cornell,et al.  Patient risk in anesthesia: Probabilistic risk analysis and management improvements , 1996, Ann. Oper. Res..

[25]  R. L. Winkler Combining Probability Distributions from Dependent Information Sources , 1981 .

[26]  Donald Boyce Davis The effect of ambiguity on lottery preferences , 1990 .

[27]  J C Helton,et al.  Performance Assessment in Support of the 1996 Compliance Certification Application for the Waste Isolation Pilot Plant , 1999, Risk analysis : an official publication of the Society for Risk Analysis.

[28]  Haresh C. Shah,et al.  Public policy issues: Earthquake engineering , 1980 .