Abstract
Industries that deal with hazardous systems are faced with the task of managing a spectrum of risks within resource contraints. They have essentially two options that can be combined in a global risk-management strategy: insurance (loss sharing) and risk mitigation through technical and organizational measures. In this article, global risk-management strategies based on probabilistic risk analysis and its extension to include management factors are described. Some issues and solutions are illustrated through practical examples, drawn mostly from the recent research of the Industrial Engineering Risk Research Group at Stanford (the tiles of the U.S. Space Shuttle, offshore platforms, marine pipelines, and anesthesia in modern hospitals).
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Einhorn, Hillel J., and Robin M., Hogarth. (1986). “Decision Theory Under Ambiguity”.Journal of Business 59 (4), 225–249.
Kunreuther, H. (1994). “The Role of Insurance and Regulations in Reducing Losses from Hurricanes and Other Natural Hazards.” Conference on the Social Treatment of Catastrophic Risk, Stanford University.
Murphy, D. M. (1994). “Incorporating Human And Management Factors in Probabilistic Risk Analysis.” Doctoral dissertation, Department of Industrial Engineering and Engineering Management, Stanford University.
National Research Council (1994).Improving the Safety of Marine Pipelines. Washington, D.C.: National Academy Press.
Paté-Cornell, M.E. (1984) “Fire Risks In Oil Refineries: Economic Analysis of Camera Monitoring,”Risk Analysis 5 (4), 277–288.
Paté-Cornell, M.E., H.L., Lee, and G., Tagaras. (1987). “Warnings of Malfunctions: The Decision to Inspect and Maintain Production Processes on Schedule or on Demand,”Management Science 33 (10), 1277–1290.
Paté-Cornell, M.E. (1990). “Organizational Aspects of Engineering System Safety: The Case of Offshore Platforms”,Science 250, 1210–1217.
Paté-Cornell, M.E., and P.S., Fischbeck. (1993). “PRA as a Management Tool: Organizational Factors and Risk-based Priorities for the Maintenance of the Tiles of the Space Shuttle Orbiter,”Reliability Engineering and System Safety 40, 239–257.
Paté-Cornell, M.E. (1993a). “Risk Analysis and Risk Management for Offshore Platforms: Lessons from the Piper Alpha Accident,”Journal of Offshore Mechanics and Arctic Engineering 115, 179–190.
Paté-Cornell, M.E. (1993b). “Learning from the Piper Alpha Accident: Analysis of Technical and Organizational Factors,”Risk Analysis 13 (2), 215–232.
Paté-Cornell, M.E. (1994). “Quantitative Safety Goals for Risk Management of Industrial Facilities,”Structural Safety 13, 145–157.
Paté-Cornell, M.E., D.M. Murphy, and L.M. Lakats. (1994). “Anesthesia Patient Safety: Probabilistic Risk Analysis and Benefits of Organizational Improvements.” Research Report to the Anesthesia Patient Safety Foundation, Stanford University.
Paté-Cornell, M.E., D.M. Murphy, L.M. Lakats and D. Gaba. (1996). “Patient Risk in Anesthesia: Probalistic Risk Analysis and Management Improvements”. Annals of Operations Research. Special Issue on Applications of Operations Research to Health Care, Summer 1996 (in press).
Reason, J. (1990).Human Error. Cambridge, UK: Cambridge University Press.
Regan, P., and M.E. Paté-Cornell (1993). “Design and Construction of Hybrid Decision Support Systems for Real-Time Risk Management and Offshore Platform Illustrations.” Research Report. Joint NSF-Industry Project (Bureau Veritas), Stanford University.
Savage, Leonard J. (1954).The Foundations of Statistics New York: John Wiley.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Paté-cornell, M.E. Global risk management. J Risk Uncertainty 12, 239–255 (1996). https://doi.org/10.1007/BF00055796
Issue Date:
DOI: https://doi.org/10.1007/BF00055796