Risk Benefit Analysis

Ethical Implications

ⁿ        When is someone entitled to impose a risk on another in view of a supposed benefit to others?

ⁿ        Consider the worst case scenarios of persons exposed to maximum risks while they are reaping only minimum benefits. Are their rights violated?

ⁿ        Are they provided safer alternatives?

ⁿ        Engineers should keep in mind that risks to known persons are perceived differently from statistical risks

ⁿ        Engineers may have no control over grievance redressal.

Conceptual difficulties in Risk-Benefit Analysis

Both risks and benefits lie in future

ⁿ         Heavy discounting of future because the very low present values of cost/benefits do not give a true picture of future sufferings.

ⁿ        Both have related uncertainties but difficult to arrive at expected values

ⁿ        What if benefits accrue to one party and risks to another?

ⁿ        Can we express risks & benefits in a common set of units?

ⁿ        e.g. Risks can be expressed in one set of units (deaths on the highway) and benefits in another (speed of travel)?

Many projects, which are highly beneficial to the public, have to be safe also.

RISK

1.    Write notes on RISK.

RISK is the potential that something unwanted and harmful may occur.

a.   We take a risk when we undertake something or use a product that is not safe.

Risk in technology could include dangers of

b.           bodily harm,

c.           economic loss, or

d.          environmental degradation.

^Ø        Some may assume that “safety” is a concrete concept, while “risk” is a vague, hypothetical concept

^Ø        In fact, its the other way around

^Ø        Risks always exist. But true safety never exists, except in hypothetical situations

^Ø        So, risk is reality, safety is  fantasy

DEGREE OF RISK IS ACCEPTABLE

Safety is a matter of how people would find risks acceptable or unacceptable, if they knew the risks, and are basing their judgments on their most settled value perspective.

So, to this extent, it is objective.

Perspectives differ.

To this extent, it is subjective.

So, Safety is 'acceptable risk'.

Acceptable Risk

„A risk is acceptable when those affected are generally no longer (or not) apprehensive about it.‟

Apprehension (i.e. anxiety) depends largely on factors such as

^v        whether the risk is assumed voluntarily.

^v        how the probabilities of harm (or benefit) is perceived.

^v        job-related or other pressures that causes people to be aware of or to overlook risks.

^v        whether the defects of a risky activity or situation are immediately noticeable

or close at hand .

^ whether the potential victims are identifiable beforehand.