OIDD 261 Study Guide - Summer 2018, Comprehensive Midterm Notes - Risk Management, Trust Law, Worst-Case Scenario Series
12 Oct 2018
School
Department
Course
Professor
OIDD 261
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Notes from Slides 2:
A conceptual Framework for studying risk:
1. Risk Assessment and Vulnerability Analysis
2. Modeling of Risks
3. Statistical Data Building Scenarios
4. /3. Risk Management Strategies--Public Private Partnerships
2. (goes backwards)
• Public Perceptions
• Expert/Layperson Differences
• Risk Communication
1. Risk Perception and Choice
Components of Risk Management Strategies--Public Private Partnerships:
1. Information Provision
2. Incentives
3. Regulation
4. Standards
5. Compensation
6. Insurance
7. Liability
Risk Assessment:
• Encompasses estimates of both the chances of a specific set of events occurring and
their potential consequences
• Experts differ in their estimates of the risk
• Find you favorite expert to support your position
Vulnerability Analysis:
• characterize forms of physical, social, political, economic, cultural, and psychological
harms to which individuals and modern societies are susceptible
• Millions of dollars have already been spent to reduce our vulnerability (think Homeland
Defense)
Constructing Scenarios:
• What are the probabilities of specific events?
• What are the potential consequences?
Technological Risk Assessment:
• Fault trees
• Event Trees
• Applications
• Risks from a Liquified Natural Gas (NG) Terminal Estimating Damage from a
Natural Disaster
• Using exceedance probability curves to depict risk (probability that p(L)
losses will exceed L versus L (loss) in dollars
Health Risk Assessment
• Dose-Response Curves (is the price of 0 risk worth it?)
Risk Perception and Choice (Basic Concepts)
• Focuses on psychological and emotional factors that have been shown to have an
enormous impact on behavior
• Hazards where individuals have little knowledge and experience are highly
dreaded and perceived as being very risky
• Disparity between experts and laypersons
find more resources at oneclass.com
find more resources at oneclass.com
• Ignoring public’s perception of risk by scientific community if it differs significantly
from their own estimates
• Individuals exhibit systematic biases in processing information and making choices
• Availability bias and framing of information may influence choice
• Individuals have difficulties learning due to biases and information processing limitations
• Examples of stigmatization: the Alar Case
• Based upon animal studies that were considered suspect because the doses
used had been so large as to have been acutely toxic
• No evidence from epidemiological studies showing Alar to be a human
carcinogen
• The reaction by the public to Alar illustrates social amplification of risk
• Media amplified the risk and effectively stigmatized the product
Risk Management Strategies (Basic Concepts)
• Policy options for reducing losses and aiding recovery process
• risk communication
• Framing information makes a difference (over a period of years)
• Present probabilities using concrete comparisons
• Economic incentives
• subsidies/fines/taxes
• Insurance
• Premium reductions on insurance policies to encourage property owners to
invest in adaptation measures
• Well enforced regulations and standards
• Disaster assistance
Role of Market and Non-Market Environments
• Market Strategies
• Pricing decisions
• Production schedule
• Marketing activities
• Non-market Strategies
• Interactions between firms and individuals
• Cooperation between firms and interest groups
• Arrangements between firms and public sector
• Voluntary
• Firm cooperates with public sector
• Firm engages in third party inspections
• Non-voluntary
• Regulations
• Standards
• Boycotts
Non-Market Issue Life cycle
1. Issue identification--specific crisis
2. Interest group formation
3. Legislation
4. Administration
5. Enforcement
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A conceptual framework for studying risk: risk assessment and vulnerability analysis, modeling of risks, statistical data building scenarios, /3. 2. (goes backwards: public perceptions, expert/layperson differences, risk communication. Components of risk management strategies--public private partnerships: information provision, incentives, regulation, standards, compensation, insurance, liability. Risk assessment: encompasses estimates of both the chances of a specific set of events occurring and their potential consequences, experts differ in their estimates of the risk, find you favorite expert to support your position. Vulnerability analysis: characterize forms of physical, social, political, economic, cultural, and psychological harms to which individuals and modern societies are susceptible, millions of dollars have already been spent to reduce our vulnerability (think homeland. Technological risk assessment: fault trees, event trees, applications, risks from a liquified natural gas (ng) terminal estimating damage from a. Natural disaster: using exceedance probability curves to depict risk (probability that p(l) losses will exceed l versus l (loss) in dollars.
