Value and Function of Information in Risk Management
The motto “Better Living Through Chemistry” has its darker side as we discover the unwanted consequences of some very desirable applications of many pesticides, preservatives, and pharmaceuticals. The hazard that we encounter are in the form of toxicity, carcinogenicity, and mutagenicity. The hazards with their associated risks range from the negligible to substantial increases over standard morbidity and mortality.
KeywordsRisk Management Spillover Effect Theoretical Risk Hazard Identification Risk Management Decision
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- 1.The representation of risk, R, is patterned after the von Neuman-Morgenstern “expected utility index.” The index is the product of the probability of a certain outcome times the utility associated with this outcome. If p is the probability of a risk event occurring and C is the magnitude of the damage when the risky event takes place, we write R=pC. This index is linear in both p and C hence the term bilinear.Google Scholar
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- 3.R.G. Collingwood, The Idea of History, Oxford University Press, 1981 p. 42.Google Scholar
- 4.R.G. Collingwood, The Idea of Nature, Oxford University Press, 1981, P. 12.Google Scholar
- 5.Stephen Toulmin, Human Understanding, Princeton University Press, 1977 P. 81.Google Scholar
- 6.Ibid, p. 84.Google Scholar
- 7.Ibid, p. 6.Google Scholar
- 8.Friedrich A. Hayek, Individualism and Economic Order, University of Chicago, Midway Reprint, 1980, p. 77.Google Scholar
- 9.Ibid, p. 78.Google Scholar
- 10.Lester B. Lave and Thomas Romer, Specifying Risk Goals: Inherent Problems with Democratic Institutions, Risk Analysis, September 1983, p. 217.Google Scholar